WTW launches new tech to rate financial cost of climate change - WTW
WTW launches new tech to rate financial cost of climate change - WTW
LONDON, June 3, 2024 — WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, today unveiled ground-breaking technology capable of quantifying the financial impact of climate change with an unprecedented level of precision. Climate Quantified™ offers ‘anywhere, anytime’ access, transparently assessing how and when physical and transition risks impact a company’s operations and assets, through to their revenue and enterprise value.
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By combining advanced, high-resolution climate data with our in-house risk engineering, WTW offers a sophisticated solution that quantifies risk in financial terms.” Peter Carter | Head of Climate Practice at WTW
The Software as a Service (SaaS) online tool also evaluates the impact of climate risks on an organisation’s customers and supply chain partners, as a necessary component of understanding financial impact of climate risks. Assessing where a business creates value and their exposure to a changing operational landscape from climate risks brings a new level of clarity to support strategic and operational decision-making.
By analysing the interactions and interdependencies between climate risk factors and their impact on business models, including physical risks, supply chain vulnerabilities and regulatory changes, Climate Quantified™ offers a far more robust analysis of financial risk impact when compared to the more limited screening and assessment of emissions alone.
Peter Carter, Head of Climate Practice at WTW, said: “Whether assessing the impact of drought, tropical cyclones, river floods or commodity price changes, Climate Quantified™ is class-leading in its ability to measure the physical and transition risks impacting a company’s assets and products. By combining advanced, high-resolution climate data with our in-house risk engineering, WTW offers a sophisticated solution that quantifies risk in financial terms.”
Key capabilities of Climate Quantified™ that support Chief Risk Officers and Chief Sustainability Officers, with a focus on building resilience to physical risks and managing the transition to net zero, include:
Ben Fidlow, Global Head of Core Analytics at WTW said: “Companies face increased losses from physical risk and are assessing the need for investment and transformation for the move to a low-carbon economy. Armed with a clear, transparent and real-time view of the financial risks to their business provided by Climate Quantified™, companies are well placed to anticipate and respond quickly to emerging risks, make better investments, reduce their reliance on vulnerable locations, strengthen supply chains and protect their people. The outcome is to ensure capital is allocated at the right time to protect against climate-driven uncertainty and volatility.”
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximise performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”