Why ESG Matters

Environmental, social and governance (ESG) risks and opportunities are a critical part of the corporate landscape. On top of the complexity of today’s business operating environment, organizations also need to address the evolving expectations of numerous stakeholders — such as regulators, investors, customers, insurers, employees and even our broader society.

A holistic view of ESG issues helps organizations address risks while also capitalizing on opportunities — whether it is the routine consideration of oversight activities, practices and policies, and reporting, or topics such as climate change, responsible investments, addressing gender pay disparities or impacts to merger and acquisition (M&A) transactions. How a business decides to identify, address, measure and report on its ESG priorities will have a critical impact on how it protects people and capital — and creates value.

Insights to Make Better ESG Decisions

Explore our insights across a range of topics that help organizations make better ESG decisions.

As climate risk grows and is seen in the increasing frequency and severity of disruptive natural disasters, the resulting economic losses are not adequately protected. The global “protection gap” for weather and climate disasters in 2021 was 62% - over $323 billion in economic losses, only $130 billion were insured losses.

Source:
Aon’s 2021 Weather, Climate and Catastrophe Insights

1 in 6 investor respondents to Aon’s global responsible investing survey have have committed to aligning portfolios to net zero. A further 42% intend to align their investment portfolios to net zero before 2050.

Source:
Aon’s Global Perspectives on Responsible Investing Report

More than three-quarters of companies surveyed identify DE&I as a top priority. Moving the needle on DE&I efforts starts with setting clear goals, establishing metrics to ensure accountability and driving new behaviors.

Source:
Aon’s Driving Positive Change Through Diversity, Equity, and Inclusion Guidebook