Managing Climate Risks

In this ERM expert video, Christol Bordovsky of Marathon Petroleum shares insights about how the company’s processes for managing risks related to climate change intersect with their ERM efforts.

Navigating Evolving Climate Change Expectations

Climate change expectations are growing globally, creating an evolving landscape of emerging risks to consider. Christol shares insights about how Marathon Petroleum’s sustainability and climate risk teams partner together with those who lead the ERM process.

Members of the sustainability and climate risk teams are part of the group of risk leaders across the company who engage in dialogue about how evolving climate-related risks are changing — and how those risks interact with others across the company. Having that expertise shared as part of the broader risk community ensures their insights are shared and incorporated into the portfolio of all kinds of risks affecting the business.

Climate Risk Experts on Risk Committee

Experts in sustainability and climate are also represented on the senior-level ERM Management Committee.  So, that expertise is embedded in the risk processes at middle-management and senior management levels.

Having their expert voice at the table helps the leadership team across different functional areas understand and manage changing marketplace expectations around climate risk so that they have a more holistic view of how risks might interact.

Managing Climate Risk Disclosures

Marathon Petroleum consistently produces reports on sustainability and climate. As the enhanced climate risk disclosure requirements continue to emerge, the company is working to coordinate the various requirements outside the USA with emerging disclosure requirements at the SEC and across the different states domestically.

Risk Opportunities

The company’s tagline is “Providing Energy Solutions.” As they look to the future, Marathon Petroleum is not limiting itself to oil and gas solutions, and is taking risks by converting conventional refineries to renewable fuels facilities. And, it is leveraging innovation to find opportunities for enhancing energy efficiencies, which also leads to lower emissions.