The Iren Group’s Enterprise Risk Management (ERM) system is aimed at identifying, assessing, treating, monitoring and reporting key business risks. 

The Risk Management Department is in charge of the integrated management and monitoring of the ERM system, through the development of the Risk Map, monitoring the correct application of Risk Policies, preparing risk analyses of the Business Plan and strategically important initiatives/projects, and preparing Risk Reporting.

Consistent with Iren’s strategies and policies, the ERM system also integrates and identifies ESG (Environmental, Social and Governance) risks in order to contribute, through the monitoring of all business risks, to the sustainable success of the Group. The identification and management of ESG risks - considered both in terms of impacts on the Iren Group and in terms of impacts generated by managed activities on people and the environment - is fundamental to presiding over all aspects that concretely influence the ability to create value over time.

The Risk Management Department deals with the integrated management of the Group’s Enterprise Risk Management System through the development of a Group Risk Map and monitoring the correct application of the various Risk Policies. For each risk category, provided in the Risk Map, environmental, social and governance (ESG) impacts are assessed.

The assessment of ESG impacts highlights the correlation between priority issues, identified in the materiality analysis process, risks and opportunities for the Group. For each risk category, the operational, contractual and insurance mitigation measures implemented, in progress or to be implemented to reduce the risk level are identified.

Risks from climate change are of increasing relevance to organisations and, at the same time, affect the health of the Planet, with the possibility of estimating significant effects as early as the medium term.

Companies operating in significantly exposed sectors such as Iren Group, must consider the analysis of climate change risks as an emerging and determining factor in the definition of their medium and long-term strategies. 

Iren Group has included in its Enterprise Risk Management (ERM) system, a specific Climate Change Risk Policy, which analyses and regulates the process of managing climate change risks, distinguishing them into physical risks and transition risks. The former are divided into acute physical risks, if related to catastrophic natural events (e.g. floods or fires) and chronic physical risks, if related to long-term climate change (e.g. temperature rise). The latter, on the other hand, are related to the transition to a low-carbon economy: depending on the nature and speed of these changes in government policies, transition risks may involve a varying level of risk for the Group.

The Iren Climate Risk commission examines the status of the Group’s climate change risks and makes decisions on how to manage them. 

The application of the risk assessment model adopted by the Group showed that the actions introduced in the 2030 Business Plan, in which asset-specific investments are outlined, have a mitigating effect on the impacts of climate change on the activities of the Iren Group. Mitigation actions of a strategic nature, linked to investments, are flanked by others of an operational and insurance nature.