This month, we present excerpts from the latest report by the World Meteorological Organization (WMO) on the state of the global climate. "In 2023, records were once again broken, and in some cases smashed, for greenhouse gas levels, surface temperatures, ocean heat and acidification, sea level rise, Antarctic sea ice cover and glacier retreat. Heatwaves, floods, droughts, wildfires and rapidly intensifying tropical cyclones caused misery and mayhem, upending every-day life for millions and inflicting many billions of dollars in economic losses."
However, according to the report, there is also a glimmer of hope. The transition to renewable energy sources. "In 2023, renewable capacity additions increased by almost 50% from 2022, the highest rate observed in the past two decades."
The annual Global Risk Report 2024 from the World Economic Forum of the OECD also paints an extremely pessimistic picture for the near future. At the top of the "top ten" global risks over the next decade are risks related to the Environment and Climate Change. Other risks that seem to be on the list of the ten most serious ones are those related to Technology, particularly Misinformation, Cybersecurity, and the negative impacts of Artificial Intelligence applications.
The above provided highlights are not only findings and predictions but also risk factors that impact the short and long-term sustainability of organizations and businesses within our company's scope of interest. Therefore, they serve as compelling reasons for them to reconsider their entire internal Risk Analysis & Management process or their reporting.
Concerning our contribution, as E-ON Integration, we added the OECD's Global Risk Report 2024 (GRR-2024) on our Knowledge Data Base of RIBIA, our Risk Management platform with Risks and Mitigation Actions as discussed in the GRR-2024. We shall provide access to the Data Base shortly, through special authorised access process. This, along with other components of knowledge we host in RIBIA, will provide valuable reference material to our clients and other casual visitors on the service, as we do with other sources of information. The GRR-2024 is an opportunity to cross-check internal risk assessments with external sources, and eventually enhance our clients' risk management process quality. Also our clients can extend their preparedness to address the challenges highlighted in the report in their own corporate affairs. E-ON's knowledge data base, including the new GRR-2024, is a proactive step towards helping E-ON's clients adapt to the volatile global risk landscape, which has become even more speculative in current times.
We identify here the need for synergies between the Internal Audit and Risk Management departments, in order to ensure that targeted controls are implemented and risks are effectively managed. This collaborative approach leads to integrated risk assessments, the development of efficient mitigation strategies, comprehensive monitoring of key risks and related controls, optimized resource allocation, improved communication and reporting, and the cultivation of a risk-aware culture throughout the organization."
Having identified the risk assessment factors and recognized the imperative for synergies between the Internal Audit and Risk Management departments to achieve business sustainability, we outline the rationale behind why companies should acknowledge and involve both internal and external stakeholders in designing, implementing, and publishing their sustainability reports (ESG). This is because each stakeholder group contributes significantly to shaping and advancing a company's ESG strategies by leveraging complementary knowledge and skills.
We hope you find our new articles interesting.
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