Supporting Energy Resilience and a Transition to a Low-Carbon Economy

March 30, 2026 15 mins

Supporting Energy Resilience and Transition to Low-Carbon Economy

Aon’s environmental strategy is grounded in our commitment to support clients facing growing climate-related risk and uncertainty.

Introduction
Resilience Solutions for Clients
Reducing the Costs and Volatility of a Transitioning Economy
Unlocking New Growth Opportunities
Responsible Investing
Global Partnerships
Related Information

Aon’s environmental strategy is grounded in our commitment to support clients facing growing climate-related risk and uncertainty. Led by our values and expertise across risk and capital, our client solutions are focused on:

Helping clients understand, quantify and manage physical climate risk to improve resilience.
Reducing the cost and volatility of transition as organizations move toward lower- carbon business models.
Unlocking growth opportunities through innovative solutions, partnerships and access to capital.

Resilience Solutions for Clients

A changing climate is driving volatility across every aspect of business — from increasing the severity and frequency of natural catastrophes, to exacerbating chronic perils like heat stress and introducing new risks as the economy transitions.

Aon Climate Risk Advisory combines advanced analytics, deep expertise and industry-leading connectivity to risk capital to uncover, quantify, mitigate and transfer climate-related vulnerabilities.

By leveraging our capabilities, clients make better decisions on climate risks and opportunities, unlocking access to capital, enabling growth and creating sustainable and resilient organizations that will stand the test of time.

This work includes:

Analyzing current-day and future climate risk for organizations across their people, assets, operations and supply chains.
Developing strategies to improve resilience.
Helping organizations optimize their access to risk capital by linking climate analytics to risk transfer decisions.
Enabling investments into climate-related markets through product development, especially in natural resources and carbon spaces.
Helping organizations report and disclose the impacts of these risks to regulators and stakeholders, aligned to regulatory requirements and investor expectations.

Aon is a leading provider of “climate risk” data, analytics and expertise for clients around the world as they become increasingly impacted by climate risk and uncertainty.

Our focus is on helping our clients prepare for — and respond to — the challenges posed by the impact of a changing climate and unlock opportunities driven by the transition to a lower-carbon economy.

Climate and sustainability team of the year

Aon, Impact Forecasting: InsuranceERM

In 2025, Aon’s Impact Forecasting team has been recognized as the climate and sustainability team of the year for advancing climate-related catastrophe modelling and helping re/insurers understand how a changing climate is reshaping risk profiles across key perils and geographies.

Quantifying Physical Risks to Build Resilience

Effectively quantifying risk is a key step in managing it. Aon has developed solutions to help our clients understand the scale and nuance of climate risk.

Our patented view of climate risk within our Climate Risk Monitor tool combines the latest observational data and high-fidelity climate projections to provide clients with actionable, decision-grade insights into their current and future exposure to physical climate risk. We collaborate with leading academic research institutions around the world to ensure our data and analytics are grounded in robust science, leveraging novel and transparent methodologies to deliver data that is explainable and trustworthy.

Aon’s investment in the suite of Risk Analyzers and diagnostic tools gives our clients direct access to climate data and insights. Our approach is to embed and integrate climate-related insights throughout the entire client journey with Aon, from identifying key risk drivers through using the Property Risk Analyzer, projecting future climate impacts in Climate Risk Monitor, to quantifying the impact of investing in resilience through Property Risk Diagnostic. Aon’s Cat Tracker platform gives clients real-time alerts about potentially catastrophe climate events.

Bringing all these capabilities together supports our clients through the entire risk management journey, unlocking more solutions designed to reduce the impact of physical climate risks and build resilience.

Insights in Action: Aon’s AI-Powered Response to LA Wildfires
At the start of 2025, Southern California was struck by a series of catastrophic wildfires. Fanned by hurricane-force winds, flames spread through entire neighborhoods of Los Angeles, destroying more than 16,000 buildings, forcing nearly 200,000 residents to leave their homes and claiming at least 28 lives. The devastation caused at least $58 billion in economic losses — with insured loss estimates projected to be as much as $41 billion.

Using real-time data-driven and AI-powered analytics, Aon’s award-winning suite of disaster response capabilities provided unparalleled insights into the impact of the fires on communities, colleagues and clients.

Powered by Aon’s proprietary and third-party artificial intelligence-empowered solutions, Aon rapidly identified impacted areas and began working with clients and trading partners.
- The Aon Industry Exposure Database carried out detailed analysis of the structures impacted, economic and insured value losses and potential emergency response patterns.
- Aon’s Wildfire Hazard Score provided key insights about the localized wildfire risk to structures and helped to assess the potential of fire spread within a region.
- Aon’s generative AI tool, AonGPT, helped data scientists and risk analysts to write code faster and more efficiently, reducing the amount of time to go from data to insights.
This unique combination of tech-driven capabilities meant that Aon could serve our clients and communities by responding to complex questions and emerging unknowns around the fires faster and with more detail than ever before.

The impact was considerable: during and following the wildfires, Aon began connecting meaningful resources to aid the economic relief needed in the area, providing our insurance and public partners with a detailed level of insight that hadn’t been available before and at a speed never before possible.
Client Impact — Parametric Solution to Strengthen US Hurricane Protection

U.S. hurricanes have caused $1.3 trillion in economic damage and nearly $590 billion in insured losses in the 21st century, remaining one of the world’s costliest perils. For some hurricane events, storm surge damage can account for more than a third of the total loss cost.

In 2025, Aon launched a parametric insurance solution designed to address and mitigate losses from hurricane-related storm surge along the coast of the U.S. Developed in collaboration with parametric flood expert Floodbase and global commercial insurer Swiss Re Corporate Solutions, this new product helps bridge protection gaps in traditional insurance policies that may demand high deductibles or include significant exclusions for storm surge risk.

Unlike traditional indemnity insurance, which pays claims based on assessed physical damage, the storm surge parametric solution is triggered by water height, allowing policyholders to select predefined payout levels for specific storm surge thresholds. The proceeds can be used for any financial loss associated with the event, addressing a substantially broader set of exposures than traditional insurance covers.

“Our data shows that storm surge can be a significant driver of losses for corporates, public entities and re/insurers alike, so we developed this collaborative parametric solution to help bolster existing levels of cover,” said Cole Mayer, head of parametric solutions at Aon.

“The solution can function either as a standalone product, or in conjunction with traditional and non-traditional insurance policies, to ensure that clients can secure comprehensive protection for their U.S. storm surge exposures. It is part of a suite of Aon product offerings that together help to shape better decisions and more comprehensive sources of liquidity for clients.”
Client Impact — Analytics Solution to Improve Catastrophe Response

Re/insurers are under increasing pressure to quickly respond to and manage the cost of natural disasters. Aon’s Climate and Catastrophe Insight recorded nearly $127 billion in insured losses in 2025. However, about half of re/insurers use models to guide their response strategies.

In 2025, Aon strengthened its Event Analytics solution through centralizing capabilities in the Risk Analytics Platform, to provide integrated hazard, exposure and loss data via a single, seamless interface. The solution supports (re)insurers’ catastrophe response before, during and after an event, with embedded and integrated capabilities including our Catastrophe Tracker, which offers best-in-class live and historical event analytics and insights; real-time loss estimates; advanced mapping tools and customized reports. It also allows insurers to recast past natural catastrophes — such as Hurricanes Milton, Ian and Helene — to assess how they would impact today’s portfolios.

Dan Hartung, global head of Event Response for Risk Capital, said: “Fragmented data sources often slow down decision-making. Aon’s Event Analytics solution is designed to support (re)insurers through all phases of global catastrophes. It delivers actionable insights that enable insurers to triage losses, mobilize resources and communicate effectively with stakeholders — all in near real-time.”
Client Impact — Helping Real Estate Group Identify Climate Risk

As the frequency and severity of extreme weather events grow and result in interconnected risks that impact an entire company, an increasing number of businesses are looking to future-proof their organizations.

In 2025, Aon in Singapore conducted a detailed analysis of physical climate risks for a global real estate client, helping them enhance how they manage and respond to climate risk. Using Climate Risk Monitor, Aon assessed the impact of flood, typhoon, wildfire, heat and cold extremes on the client’s assets up to 2050. Additionally, the tool was able to connect these projections to the client's capital planning, risk transfer program and resilience spending.

Reducing the Costs and Volatility of a Transitioning Economy

Aon supports the transition to a greener future by helping clients derisk and insure renewable energy assets across their full lifecycle. From development through construction and operation, Aon works with project developers, investors, lenders and operators to design insurance and risk-management programs for onshore and offshore wind, solar, hydrogen, battery storage and other clean technologies. By addressing exposures such as construction delays, equipment damage, business interruption and liability, Aon helps make renewable projects more bankable and attractive to capital providers, accelerating the build-out of low carbon infrastructure.

Aon also focuses on emerging and enabling technologies that are critical to decarbonization. This includes insuring long-duration energy storage, green hydrogen, electric vehicle infrastructure and integrated portfolios of renewables. Through specialist sector knowledge and analytics, Aon helps clients understand performance and technology risks, navigate evolving regulations and structure coverage that aligns with lender and investor requirements. This improves confidence in project cash flows and supports the scaling of innovative solutions that underpin the low-carbon transition.

Aon is further advancing the green transition by developing specialized risk-transfer solutions for carbon capture and storage (CCS). These solutions are designed for projects that capture, transport and permanently store carbon, addressing complex risks such as infrastructure damage, interruption to operations, long-term storage integrity, environmental liability and the potential loss of tax incentives or carbon credits if carbon is not securely stored. By bringing together insurers, project sponsors and financiers around robust CCS insurance structures, Aon helps reduce uncertainty and long duration liabilities, enabling more CCS projects to proceed and supporting clients in meeting their decarbonization and regulatory commitments.

Unlocking New Growth Opportunities

Aon supports its clients in the transition to a lower-carbon economy, which can create new growth opportunities and a more sustainable future. A comprehensive set of risk and capital solutions, designed to support decarbonization and clean technology, enables our clients to innovate and advance their goals.

Aon is helping public and private entities to accelerate capital flows for low-carbon transition in several areas, including:

To help the insurance market and organizations understand historical and future assessments of physical climate risk, Aon has developed Climate Risk Monitor, a specialized tool that leverages Aon’s proprietary view of climate risk based on Intergovernmental Panel on Climate Change (IPCC)-vetted climate models, refined by in-house climate scientists and validated with our academic partners.
Aon’s Transition Performance Index (TPI) is designed to assist clients in emission-intensive sectors to secure cover over the course of their shift to greener energy. By leveraging objective data from public sources and Aon’s proprietary analytics, Aon’s TPI enables underwriters to better understand the impact of a client’s actions to become greener and justify providing risk capital. In November 2025, Aon launched its Low-Carbon Transition Framework for Insurers — a seven-step process aimed at driving re/insurer engagement with the sustainable energy section. The Framework provides an actionable pathway to profitable growth by helping re/insurers to capture surging premiums from rapid innovation and rising investments in sustainable energy solutions.
By leveraging custom systems performance insurance to cover technology risk, Aon helps organizations to protect their investments in innovative technologies and to stabilize the internal rate of return. This insurance helps accelerate customer adoption of emerging technologies — especially leading-edge renewable energy capabilities.
Carbon Capture and Storage Solutions help transportation and storage companies — as well as emitters using abatement technology — manage new and emerging exposures, including carbon dioxide capture and leakage. By helping reduce risk, these solutions improve access to capital, support regulatory compliance and help advance net-zero targets.
In 2024, Aon developed a new insurance product designed for international transport and storage companies that are engaged in storing carbon dioxide. This provides cover for key risk exposures associated with Carbon Capture and Storage (CCS) and advances the role of insurance in derisking global CCS projects. This also opens up access to capital providers and investors for CCS projects.
As companies seek to increase resilience in their current and future supply chains, Aon has pioneered the use of risk analytics and insurance for Agricultural supply chains:

Aon has provided a leading Nature Based Solution project developer, UNDO, with a carbon credit non-delivery insurance policy that will pay out in the event of carbon credits’ non- or under-delivery and therefore protects investors from losing their principal stakes.
Aon has worked with a global coffee business, the Colombian government and a local coffee trader to construct an insurance program for coffee farmers that protects against climate-related events and supports long-term resilience across the coffee value chain.

These tools and analytics have allowed Aon to play a critical role in helping the insurance industry streamline a consistent, forward-looking pricing model for new risks and large-scale projects.

Responsible Investing

Aon Investments helps institutional investors build a more secure future for their stakeholders by delivering best practices, clear advice, data-driven analytics and innovative investments and solutions. For clients who request investment portfolios that consider climate impact, Aon can support strategies that are aligned with fiduciary duties, regulatory requirements and clients’ stated values or commitments.

To better serve client interests, Aon Investments United Kingdom has been a global signatory to the Principles for Responsible Investing since 2009 and the UK’s Stewardship Code. Our RI-360i and Climate-360i dashboards further support clients by enhancing visibility into their climate risk exposures.

Global Partnerships

Mitigating a changing climate requires a coordinated, targeted effort across geographies, governments, businesses and other stakeholders. Aon uses our unique insight as a broker to convene industry leaders and market makers to identify solutions and areas for cross-industry collaboration.

During New York Climate Week in 2025, Aon brought together leaders across industries for the fourth annual Risk and Resilience Summit to explore the critical role of the insurance industry in driving resilience solutions. This high-profile event brought together global leaders, policymakers and innovators to explore how insurance capital unlocks bold action in addressing climate-related volatility. The summit included over 250 executive-level attendees from various industries, including financial institutions, energy, utilities and the public sector.

Attendees at the Summit discussed the increasing risk of ineligibility for insurance due to climate and extreme weather events and emphasized the importance of collaboration and data-led insights to drive solutions.

Tackling the complex and interrelated challenges of climate resiliency will require a great deal of public-private sector collaboration and cross-industry knowledge exchange.

At COP30, Aon was among founding members of a $3 billion adaptation initiative called “Mobilizing Business for Resilience.” The initiative was launched by the Global Resilience Partnership, in collaboration with the International Finance Corporation, to establish a cross-sector, cross-region platform for private sector action on climate resilience, as driven by business priorities, grounded in science and aligned with global policy frameworks.

We partner with organizations that face volatility, supporting them to unlock capital and drive better data-first decisions through re/insurance solutions, analytics and advisory. Aon invests in research and academic collaborations — combining Aon proprietary data with climatologist expertise — to help our firm evaluate models and provide strategies that unlock resilience.

Our collaborations with top climate academic institutions enable Aon to bring scientific insight into catastrophe and climate modeling, quantification of climate risk in re/insurer portfolios and better decisions on pricing, investments and exposure management.

For example, Aon is a member of the United Nations Environment Programme Finance Initiative’s (UNEP FI) Principles for Sustainable Insurance initiative, which offers a framework for addressing climate volatility through insurance, while identifying strategies for our industry to enable the transition to a more resilient and sustainable economy.

Amplifying our Impact

As the world navigates unprecedented volatility across trade, technology, weather and workforce, the need for resilience is amplified. Aon’s 2025 Climate and Catastrophe Insight highlighted that, while global economic losses were 23% below 21^st-century average at $260 billion, insured losses reached $127 billion — 27% above the long-term average. While the largest concentration of losses came from the California wildfires, it serves as a warning sign to organizations and communities that the location and severity of certain events can reshape the picture of global loss. Aon is uniquely positioned within the insurance industry to help organizations and markets unlock access to capital, enable growth and create resilient organizations. Organizations that make strategic choices to build resilience into their core operations will reduce exposure to risk and be better positioned to capitalize from the opportunities for long-term growth.