Sustainability Governance and Risk management
Sustainability Governance and Risk management
This means maintaining a sound decisionmaking process while fulfilling regulatory requirements and commitments, mitigating risks, strengthening our cybersecurity, and establishing and enforcing ethical standards – for our customers, suppliers, and our Company. Our robust Governance and Risk Management capabilities form the core of Nouryon’ s operations.
We drive transparency and accountability through continuous monitoring and audits to ensure all mitigating actions are completed. Learn more about Governance, Risk Managment and Task Force on Climate-related Financial Disclosures (TCFD) in our Sustainability Report.
You can find more information about our Board and its committees here.
Effective risk management is essential to achieving Nouryon’s strategic objectives. We apply an Enterprise Risk Management (ERM) approach grounded in the COSO54 reference model to identify and manage risks and opportunities across the organization.
Our ERM framework covers strategic, financial, operational, compliance, IT, legal, business‑continuity, security, and sustainability‑related risks and opportunities, including climate. This integrated approach helps us minimize risks, capture growth opportunities, and make transparent and accountable decisions across the organization, reinforcing Nouryon’s reputation as a reliable business partner.
Ultimate oversight of risk management and compliance rests with Nouryon’s Board. Our ERM and internal control system operates through three lines of defense, with management owning and managing risks, second‑line functions providing oversight and guidance, and Internal Audit delivering independent assurance.
The Board oversees Risk Management and Compliance.
Climate change is among the most urgent challenges of our era, and the shift towards a net-zero-carbon economy presents significant risks and opportunities.
Our qualitative analysis encompassed both transition and physical climate‑related risks and opportunities. The analysis was conducted in line with the recommendations of TCFD and referred to leading climate models and scenarios. We utilized publicly available, peer‑reviewed climate‑model data from the United Nations Intergovernmental Panel on Climate Change (IPCC).
We considered a variety of scenarios to identify potential climate‑related risks and opportunities for the Company. The analysis encompassed our products and services, operations, and value chain, including priority logistics assets critical for the transport and storage of our products, spanning upstream, downstream and internal operations.
The results of this analysis are detailed in our Sustainability Report.
Climate-related Risk Analysis Findings
We integrate climate risks and opportunities into our business strategy, particularly when exploring new market opportunities and aligning investments with the transition to a low-carbon economy. This includes expanding sales into renewable energy markets, such as cables, wind turbines and developing crop solutions to enhance yields and combat soil depletion.
Read more in our Sustainability ReportRelated content
