Climate Risk Ready NSW Guide

The updated guide builds on the 2021 version by:

• providing more structured guidance on transition risk and opportunity management, including the use of transition (decarbonisation) scenarios to help agencies understand the potential impacts that climate action may have on their operations and obligations
• aligning with NSW Treasury requirements under TPG24 -33 Reporting framework for climate-related financial disclosures (for example materiality, governance and structured reporting)
• providing more practical guidance on action prioritisation, trade -offs, triggers, thresholds and stakeholder engagement, supported by an expanded toolkit
• emphasising an ongoing cycle of assessment, action and improvement, ensuring climate risk management is embedded as an ongoing organisational function rather than a one -off assessment 

No. Agencies can build on existing assessments and progressively update them rather than starting again. 

Agencies are encouraged to include transition risks and opportunities. This can start at a high level and be expanded over time. See Climate-related Transition Planning guidance

Transition risks and opportunities arise from the shift to a low -carbon economy, driven by changes in policy, regulation, technology, markets and public expectations.

Transition risks are the potential negative impacts, such as increased costs, compliance pressures or operational disruption.

Transition opportunities are the benefits of responding effectively, including reduced emissions, improved efficiency, innovation, cost savings and enhanced reputation.

Agencies are encouraged to reach at least a systematic level of maturity with consistent processes as quickly as possible and then aim for embedded, where climate risk is integrated into governance, planning and decision-making.

Climate -related risk and opportunity assessments underpin disclosures. The guide provides a practical process to identify and assess risks and opportunities and generate outputs that support disclosure requirements. 

The guide supports recommended practice or compliance (where applicable) but primarily aims to support good stewardship of public assets, services and outcomes. It improves decision -making, strengthens resilience and embeds climate -related risk and opportunity management into core business processes. 

The guide is designed to integrate with existing frameworks and governance rather than replace them. 

The time required depends on your organisation’s size, complexity and maturity. Many organisations start with a high -level assessment (which you will likely already have from the first guide) and progressively deepen their approach over time.

The guide provides a comprehensive process toward best practice. You can take a proportionate approach based on your current maturity, risk exposure and resources.

If you are new to this, start at the Step 1 and progress through the guide. If you’ve already used the previous guide, review the updated content and identify any gaps in your current approach. The climate risk maturity health check tool can help you assess where you are now and prioritise your next steps.

While scenario analysis is not a disclosure requirement under TPG24 -33, it is an important part of effective climate risk management. Scale your approach to scenario analysis based on the objectives of your organisation, its resources, and the complexity or significance of the risk profile.