Risk and Opportunity Management
The following analysis was prepared by the Environmental and Sustainability department and approved by the Consus Enerji Sustainability Committee.
1. Risk Identification and Definition:
Workshops and Consulting: The annual workshops organized by the Sustainability Committee are used to identify environmental, social, and governance (ESG) risks. During these workshops, sustainability risks that may arise in the organization’s activities and supply chain are defined and thoroughly evaluated. Topics such as environmental risks (e.g., climate change), social risks (e.g., labor rights, community impact), and governance risks (e.g., transparency, ethical behavior) are discussed.
2. Risk Approval:
Approval Process and Management: Identified risks are reviewed by the Sustainability Committee and approved by the committee chair. This approval process ensures compliance with the organization’s risk management policies and strategies as required by national and international standards. Additionally, the analysis and results of risk identification are transparently presented in the company’s sustainability report.
3. Annual Review and Reporting:
Periodic Review: Risks and opportunities are reviewed during regular meetings of the Sustainability Committee every year. This review process is updated based on changes in the company’s activities and external conditions.
Reporting and Transparency: The process of monitoring and managing risks is detailed in the annual sustainability report, which outlines how the company addresses ESG risks and opportunities, actions taken to mitigate risks, and the results achieved.
4. Risk Delegation and Management:
Responsibility Distribution: Each risk is delegated to a member of the Sustainability Committee, who is responsible for managing and monitoring the associated risk. In line with Risks and Opportunity model, the management, monitoring, and performance assessments of identified risks are clearly documented in the reporting process.
5. Monitoring, Evaluation, and Action:
Monitoring and Analysis: The relevant committee member monitors, analyses, and reports on the performance of each identified risk annually. The management and monitoring process, evaluates how ESG factors are assessed and how success and challenges are determined, which is transparently reported.
Mitigation and Improvement Actions: Mitigation strategies and improvement actions are developed for each risk and opportunity. These actions are planned and reported to meet sustainability goals.
6. Opportunities and Future Strategies:
Opportunity Assessment: Strategies are developed for identified opportunities (e.g., low-carbon energy solutions, renewable energy investments). These opportunities are directed towards supporting the company’s sustainability goals. The opportunities are discussed in the reporting process, focusing on sustainable growth and value creation.