Climate Risk as a Value Driver Across the Deal Lifecycle

Climate Risk as a Value Driver Across the Deal Lifecycle

Climate Risk as a Value Driver Across the Deal Lifecycle

Climate risk is now a key factor shaping deal value and investment outcomes. Learn how businesses can assess and use it as a value driver.

Climate risk now directly shapes deal value and investment outcomes across the deal lifecycle. With natural disasters driving an estimated $260 billion in global economic losses in 2025, and more than half of those losses remaining uninsured, physical climate risk is no longer a peripheral concern. Extreme weather events are becoming more frequent and less predictable, and their impacts increasingly influence future cash flows, operating performance and asset resilience across the deal lifecycle.

Aon helps deal teams assess climate risk with the same rigor applied to any other value driver. By combining analytics driven screening, asset level modelling and forward looking climate scenarios, we support investors in quantifying exposure, understanding how risks may evolve over time, and translating climate insights into practical decisions on pricing, risk mitigation, insurance and resilience planning — from initial diligence through to exit.

Three key takeaways

  1. Climate risk affects revenue, costs and insurability — and quantifying these impacts is essential for valuation assumptions and deal economics.
  2. Climate risk assessments must combine historical loss experience with forward looking climate scenarios to capture evolving hazards and align with the multi year horizons used to value investments.
  3. Clear, data driven mitigation and risk transfer strategies enable deal teams to price risk, protect value and improve asset resilience at exit.
Climate Risk as a Value Driver Across the Deal Lifecycle Report

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