Our Risk & Compliance organization asked a cross-functional team of up-and-coming leaders to help embed climate-risk considerations into our existing risk management frameworks, which provide a process for leaders and employees to methodically identify and assess risks in their work, and then define how they will mitigate those risks. The project was part of the second year of the award-winning Risk & Compliance Cross Training Program, which annually brings together 10 teams of Risk & Compliance employees to drive the organization’s high-priority initiatives forward. Since the program’s launch in 2020, more than 250 employees have stepped outside their day-to-day work to learn something different, build new skills, collaborate with colleagues and gain exposure to senior leaders. In this environment, thoughts are shared freely and ideas are formed quickly as employees exercise their strengths to tackle pressing challenges.
The Climate Risk Cross Training team contributed to significant solutions for risk framework enhancements, including incorporating climate-change considerations in risk management policies, risk assessment frameworks, governance and reporting. “The Cross Training team was a vital part of the global, broader piece of work to build the foundations for managing climate risk,” said Clare Davies, Global ESG Chief Risk and Compliance Officer. “The team did a tremendous job in breaking new ground and are now valuable climate risk ambassadors who can support companywide implementation.”
BNY Mellon is on a multi-year journey to embed climate and other ESG considerations in our existing risk management frameworks and processes. A significant enhancement in 2021 was ensuring that climate-change risks are considered in risk decision making processes. We want to think about climate risk as a routine part of doing business, whether it’s onboarding a new client, introducing a new product or service, or decision-making about a credit or investment risk. To keep this momentum going across the company and help reach these goals, a continuing education program for employees and legal entity boards is being rolled out in 2022.
A Cross Training team member stated, “It is rewarding to be part of an initiative that is bringing about positive change to the world, and it’s certainly an area where companies such as ours can make a true impact. Participating in this initiative has given me the opportunity to build my network, and I have increased my knowledge of an area that is ever-evolving.”
Risk & Compliance is unlocking the potential of future leaders by deploying them to tackle high-priority issues. The collective success of the Climate Risk team has helped prepare BNY Mellon for the challenges that climate change may bring. For our clients, investors and the financial ecosystem, their work helps ensure a more stable and secure future.