Senior management, who set the tone, capture the ESG risks and opportunities that bear on the organisation and that the organisation creates for others, and the organisation manages those found significant or has processes and procedures to handle them. For the IWA, risks are the negative and opportunities the positive side of uncertain events that can change ESG impacts; their uncertainty, significance and magnitude are assessed to decide whether action (mitigation, adaptation or informed acceptance) is warranted, remembering that thresholds and likelihood judgements can be subjective. The response takes account of the organisation's or decision-makers' appetite, the knowledge of relevant interested parties gathered through engagement, the inherent attributes of the system concerned and the knock-on effects of acting or not. Risks and opportunities are framed by ESG factors and impacts, materiality (financial and impact, inside-out and outside-in), significance and magnitude, directness, interested parties' perceptions and the benefits attached to opportunities, and are considered across the whole organisation, the product and service life cycle and the value chain; when risks are found their direct, root or indirect causes are treated, and when opportunities are found decision-makers look proactively for emerging ones.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.