Southeast Asia · Case study

PSA Singapore within the PSA International Group, TCFD Aligned Enterprise Risk Management

Singapore2022 to present

PSA Singapore, a major container port operator within the PSA International group, integrates enterprise risk management into its corporate governance framework (PSA International, 2023). The group's ERM framework covers sustainability related risks, including governance, cybersecurity, health, safety, security and environment risks, as well as climate related risks (PSA International, 2023).

The port's governance structure includes board level oversight of risk, with identified risks assessed each quarter and submitted to Group Risk Management, which reports to the Audit & Risk Committee of the PSA International board (PSA Singapore, 2024).

PSA International has aligned its climate risk management approach with Task Force on Climate related Financial Disclosures (TCFD) framework recommendations, covering governance, strategy, risk management, and metrics and targets (PSA International, 2023).

PSA International's group framework includes climate scenario analysis for physical risks such as sea level rise, extreme rainfall and heat stress on port operations and workforce safety, and a climate risk register covering physical and transition risks (PSA International, 2023). The group board's Audit & Risk Committee reviews the effectiveness and adequacy of risk management processes and procedures (PSA International, 2023).

PSA Singapore's climate risk assessment identifies transition risks from regulatory change, shifting customer preferences, new technologies and reputation, and physical risks that may disrupt supply chains and shipping schedules (PSA Singapore, 2024).

Transferability

PSA shows how a large operator can bring climate risk into its existing enterprise risk framework rather than building a separate system. DMC ports can use the four TCFD areas (governance, strategy, risk management, and metrics and targets), now carried into IFRS S2, to structure their climate risk work. A quarterly cycle in which business units assess risks and report them to a central risk function, and then to a board audit and risk committee, keeps oversight regular. Scenario analysis can start with the physical hazards most relevant to the port, such as sea level rise, extreme rainfall and heat stress.

Sources

All information used for this case study was based on publicly available resources.