Climate-Related Financial Risk Report

Governance

Board Oversight 
Board oversight of climate-related risks is a critical aspect of corporate governance, ensuring that ECHO proactively identifies, assesses, and manages the potential impacts of climate change on its operations, strategy, and long-term value. The board of directors is responsible for setting the tone at the top by integrating climate considerations into the company’s overall risk management framework. This involves regularly reviewing climate-related risk assessments, monitoring the effectiveness of mitigation strategies, and ensuring alignment with the organization’s sustainability goals. By doing so, the board helps safeguard the company against regulatory, financial, reputational, and operational risks associated with climate change.

Effective oversight also requires the board to stay informed about emerging climate trends, regulatory developments, and stakeholder expectations.  As needed, ECHO’s Board may establish a dedicated committee or assign responsibilities to specific individuals to focus on climate risk, ensuring thorough and ongoing attention to these issues.

Management Role:
The Governance, Risk, and Compliance (GRC) Team is responsible for monitoring applicable regulations, providing updates and guidance to leadership, and ensuring required reporting is completed timely.

As assigned by the Board, other Managers are responsible for integrating climate risk considerations into their respective areas, such as operations, supply chain, and product development.  This includes conducting or participating in risk assessments and ensuring that any mitigation efforts are implemented and effective at the operational level.

Collection of Information

• Business Impact:

  Climate risks influence ECHO’s strategic planning in several ways:

  Physical Risks: Severe weather events can disrupt data centers, vendor operations, and the broader supply chain, potentially impacting service delivery and operational continuity.

  Transition Risks: Regulatory changes (such as California’s SB-261 climate risk reporting), evolving customer expectations for sustainable practices, and new disclosure requirements can increase compliance costs and affect revenue streams.

  Market and Reputational Risks: Shifts in client preferences toward environmentally responsible partners may influence contract renewals and pricing. ECHO’s commitment to sustainability and transparent climate disclosures helps maintain stakeholder trust and competitive positioning.

• Time Horizons:
  ECHO will continue to monitor for applicable laws and regulations, to ensure ongoing compliance.

Risk Management 

• Identification Process: 
  ECHO performs regular enterprise risk assessments to identify and proactively address potential risks to the company.  These assessments include potential climate-related risks.

• Integration: 
  Identified risks are logged in the Risk Catalog, along with any remediation efforts, for ongoing tracking and reporting.  See more on this topic in ECHO’s Risk Management policy and procedures.

Adaptation & Mitigation Measures

• Actions Taken: 
  • Charging stations for electric vehicles installed and made available to employees.
  • Implementation of Garden Club, with on-site Greenhouse
  
  

Gaps & Future Plans

• Disclosure Gaps: 
  There are no known gaps at this time.  ECHO will continue to monitor for and comply with applicable reporting/disclosure requirements.

• ECHO will publish this report on the main website and submit the URL to CARB’s public docket starting in January, 2026.
  
  

Compliance Note

This report is prepared following the TCFD framework as recommended by SB 261. It represents a good faith effort for the initial reporting cycle. Future reports will expand disclosures as data and processes mature.