Our Risk Management team coordinates our risk management program, and we have robust governance processes in place to help manage and mitigate operational risks at the site level. The Board of Director’s Audit and Risk Committee ultimately approves our internal audit risk assessment and oversees our risk management program, which incorporates strategic, financial, operational, regulatory and legal risk into future business planning.
Climate Change Risk and Opportunity
When Constellation was part of Exelon, we performed a climate risk assessment to identify and quantify climate-related risks and opportunities and evaluate business resiliency under various industry-recognized climate scenarios. For more information, please see the Risk Management: Identifying, Assessing and Managing Climate-related Risks section of Exelon’s 2020 Sustainability Report. We intend to update that climate risk assessment to understand our specific risks and opportunities given the passage of time and hope to provide more details in next year’s report.
Our operations may face climate-related physical risks, such as damage from increasing temperatures, severe weather events and sea level rise, as well as transition risks, such as changes to energy systems as a result of new technologies, changing customer expectations and regulatory requirements intended to reduce GHG emissions. However, there are also clear opportunities for Constellation to mitigate the effects of climate change and support the transition to a low-carbon future as a leading clean, carbon-free energy provider. As the risks from climate change become more apparent, there is a growing market for clean energy solutions as companies and organizations work to reduce their GHG emissions and comply with new regulations.