Climate risk and response has rapidly moved up the agendas for leaders everywhere as extreme weather events and new research findings highlight the risks to lives and livelihoods. Our research and analysis found that in 2022, economic losses from natural disasters were estimated at $313 billion. The protection gap for those losses is 58 percent. Yet, even as these events rise in frequency and severity and the costs mount, many companies are still seeking to understand their risk exposures and how to embed environmental, social and governance risk into their decision making.
We know that the stakes are high, that the immense magnitude of the challenge requires every organization to play a part, and that better decisions today are essential for our shared future. Our ESG strategy is focused on three major areas of environmental impact — our own decarbonization efforts and investments in sustainability, our work to accelerate clients’ climate resiliency and response and convening leaders and organizations to collaborate and scale our ambitions.
Our Carbon Reduction Commitment and Actions
In 2021, Aon committed to achieving net-zero emissions by 2030, joining the global effort to manage the effects of climate change through bold and ambitious actions.
Our 1.5 degree pathway targets are in the process of being validated by the Science Based Targets Initiative (SBTI) and we expect to report our progress through our annual report to the Carbon Disclosure Project (CDP).
Our Environmental Policy reinforces our pledge to pursue sustainable business solutions and provides a global framework and controls for more responsible operations.
We have reduced our emissions by 16 percent since the 2019 baseline.*
Greenhouse Gas Emissions*
Tons of CO2e, Thousands
Currently, our emissions footprint is largely from our supply chain, real estate and travel. We’re taking steps to further mitigate those emissions by:
- Continuing our sustainable sourcing strategy, enabled by our Aon Business Services (ABS) platform
- Reducing the impact of our real estate footprint by reducing the space we use and improving energy efficiency across our real estate portfolio and technology, including through the use of renewable energy
- Thoughtfully limiting our travel and commuting footprint through our Smart Working strategy
Impact Story - Sustainable Aviation Fuel Pilot Program
In 2022, Aon joined a sustainable aviation fuel pilot designed to help decarbonize air travel. Aon and other participating businesses and organizations have committed to increasing the adoption of sustainable aviation fuel (SAF) — a form of biofuel used to power aircraft that has similar properties to conventional jet fuel but with a smaller carbon footprint. Aon and other companies that participate in the pilot have access to a sustainable-aviation blockchain book-and-claim solution, which provides access to SAF certificates and attributes. Over time, we believe our investment will help advance a broadly scalable solution, and one which requires collaboration with suppliers and clients to move towards sustainable alternatives. As the first corporate adopter of this program, Aon is investing to ensure a sustainable pipeline of SAF is available to reduce travel emissions now and in the future.