Climate Risk Management
Under the precautionary principle, Cox’s risk management system covers all types of risks, including environmental risks and those related to climate change, across all activities and geographies where the company operates.
This system includes the identification and assessment of actual and potential risks, the development of remediation mechanisms for materialized risks, and the establishment of procedures to address identified potential risks.
In addition to the guidelines from the latest IPCC report, Cox has incorporated the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) and the European Sustainability Reporting Standards (ESRS). These recommendations pertain to senior management’s involvement in managing climate-related risks; the establishment of a risk identification and management system at both the global and facility levels, in the short, medium, and long term; the integration of this system into the company’s overall risk management processes; and the disclosure of the metrics used by the organization to assess climate-related risks and opportunities, as well as the risk management process.
The monitoring and tracking of these and other risks, along with the mitigation measures applied, facilitate the development of lessons learned. This approach transforms risk management into a mature process, allowing for continuous feedback and the application of experience-based measures in both new and existing projects.
