LONDON, 9 June 2020 – Aon plc (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement and health solutions, is collaborating with The Climate Service to help clients understand and manage climate risks today and into the future.
Financial regulators across the world, including in Canada, the European Union, Hong Kong, Japan, Singapore and the UK, are setting guidelines to manage the effects of climate change on financial stability and build on the work of the Financial Stability Board’s Taskforce on Climate-Related Financial Disclosures (TCFD). This further compels businesses to measure and manage climate risk but often they do not have the tools to quantify the key parameters.
The novel coronavirus (COVID-19) has tested the resilience of economies and is providing a good example of how systemic changes can impact financial, economic and social stability. To better prepare companies across all sectors for the impact on climate, Aon has entered into an exclusive broker relationship with The Climate Service (TCS) that combines science and technology to measure, monitor and manage the financial impacts of climate on business and investments. The combined service brings together complementary analytics with a climate focus and comprises:
While the Climanomics® platform is currently used by asset managers, Aon identified an opportunity to broaden the reach of these insights to risk managers and accelerate the firm’s ability to support clients in a broader set of industries.
Greg Lowe, head of resilience and sustainability at Aon, commented: “As we support our clients with their insurance placements, we are very much aware of the immediate physical damage to an asset and the financial impacts to supply chains, customers and investors. We are excited that our collaboration with The Climate Service will drive greater awareness of climate risks and the opportunities for clients to reduce earnings volatility and improve balance sheet resilience.”
Aon is committed to helping clients leverage emerging technologies and new ways of working that advance their strategic initiatives. This offering is part of Aon’s technological evolution to deliver new products that meet clients’ needs today and tomorrow, in a transparent and efficient way, through innovative collaborations.
James McMahon, CEO of The Climate Service, commented: “As climate risk reshapes financial and insurance markets, support for the Taskforce on Climate-Related Financial Disclosures continues to grow along with the demand for tools to measure and manage climate risk. Through our collaboration with Aon, we are excited to scale our offering of actionable, financial insights based upon the most advanced climate science available, with the goal of helping organizations move from business as usual to action.”