Climate Risk Consulting
Learn how your organization can benefit from climate risk consulting.
What is Climate Risk Consulting?
Through advanced modeling, climate risk consulting helps organizations understand their exposure to climate risk and provide advice on managing and mitigating that risk. At Aon, we help clients to make informed decisions around climate risk reduction and to embed climate considerations into their strategy.
Why is Climate Risk Consulting Important?
Climate risk is a financial risk. The climate is changing, with severe and unpredictable weather becoming a part of everyday life. Climate risk is a highly interconnected risk that could cause business interruptions, material scarcity, supply chain issues, reputational damage, property damage, asset value volatility and more.
The pressure on companies to act on climate change continues to increase, with disclosure regulations encouraging companies to proactively address climate-related risks and opportunities. Organizations can be more resilient by managing the physical and transition risks resulting from climate risk and working towards sustainability.
By the Numbers
Modeling the financial impact of climate risk helps organizations navigate physical and transition risks to build resilience and harness opportunity.
Some $313 billion of economic losses resulted from weather and climate events in 2022.
Source: Aon's Weather, Climate and Catastrophe Report
Global emissions need to fall by 43 percent by 2023 in order to limit temperatures rising to 1.5C.
How Aon Can Help
We help clients to address physical and transition risks. We have specialist climate modeling tools and expertise to help clients assess and mitigate exposures to acute and chronic physical risks. We also use proven methodologies to assess and quantify transition risk and opportunity. Our approach can help clients meet disclosure requirements with analysis that supports tactical and strategic decisions.
Physical Risk Modeling
Our physical risk modeling tools – built on our natural catastrophe and risk engineering expertise – assess the exposure of client assets to climate change. Our actuarial capabilities and relationships with specialist climate model vendors allow us to quantify the value at risk under warming scenarios and evaluate vulnerabilities in the portfolio to physical risks.
Physical Risk Mitigation
Our vulnerability reports evaluate climate risks and help us develop tailor-made mitigation strategies for our clients. Our Property Vulnerability and Climate Change Assessment includes a qualitative evaluation of physical threats from natural hazards, including earthquakes, hurricanes, severe convective storms (tornado, hail), temperature extremes, wildfire (direct and indirect impact), flood, surface water and drought.
Our approach to transition risk builds on our deep risk advisory expertise to support clients in managing potential risks associated with various transition scenarios and in surfacing opportunities. As the global economy restructures to meet targets to limit global warming, our practical approach looks to highlight opportunities to help companies position themselves in a low-carbon economy.
We help clients optimize risk finance by making better risk retention and transfer decisions. Our analytics capabilities and insurance knowledge allow us to design innovative solutions for climate-related volatility. This can include using captive vehicles for risks that may be traditionally difficult to insure, providing solutions to accelerate the transition and ensuring risk exposures are reflected in optimal insurance pricing.
The information contained on this page and the rest of this website is subject to the terms and conditions found here.