Aon’s Post

Would you like to know how your peers are preparing for climate change? Fill in our Climate Change Survey, and you’ll help build up a snapshot of the state of play. Designed for risk and insurance managers, the survey will take only a few minutes to complete, and the results will shape StrategicRISK’s special report on climate change. Make sure to add your voice – take the survey here: ➡ https://lnkd.in/eC_iC6Sa #ClimateChange #ZurichCommercialInsurance

Key Insights from the Fed's Climate Scenario Analysis Report The Federal Reserve asked the top 6 banks in the US (Bank of America Corporation; Citigroup Inc.; The Goldman Sachs Group, Inc; JPMorgan Chase & Co.; Morgan Stanley; and Wells Fargo Company) to participate in a climate scenario analysis exercise to learn about their climate risk-management practices and challenges and to enhance their ability to identify, estimate, monitor, and manage climate-related financial risks. The participating banks used data from both internal and external sources, including First Street data, to respond. Read our guide for key takeaways from the Fed's report and learn how First Street models enable our partners to report on physical climate risk with confidence.

Key takeaways from the Fed's Climate Scenario Analysis report released last week: * banks need to understand correlated risk across their CRE & RRE portfolios - under tail risk severe weather events * data enrichment - external providers can enhance property-level data * financial impact of climate risk - critical to translate into climate-adjusted PD & LGD Learn more in our guide!

It is important that a company's directors and officers take a robust approach to assessing their climate risk exposure. This can enable them to allocate capital wisely and strategize effectively. Don't miss our latest article by Carolina Alvarez Rey and Robyn Campbell for more insights! 🌱💼https://bit.ly/3J7CwVA

The latest UNEP FI climate risk assessment reiterates four key enablers of a holistic and effective risk management approach to optimise the use of climate tools: ·        Accessibility across departments ·        Integration with existing solutions and metrics ·        Holistic risk evaluation ·        Capacity-building and internal tool development

“To create the most effective strategies for climate risk and sustainability, it’s essential that organizations have the most useful and up-to-date data,” says Liz Henderson, head of Climate Risk Advisory, Aon. Read more: https://aon.io/3Q17WRT  #BetterDecisions #Climate

How do global risks intersect with financial institutions, and what regulatory steps are major economies taking to address climate change? Financial institutions wield significant influence over economic activities, making them key players in steering the global economy toward sustainability amidst pressing global risks. A detailed answer from Climind can be found here: https://lnkd.in/ejW6uk6Q The World Economic Forum identifies critical global risks, from ecosystem collapse to cyber insecurity. Financial institutions, with their sway over economic activities, are instrumental in tackling these challenges, shaping sustainable practices, and bolstering resilience against climate impacts. Events like #COP28 signal progress toward a global consensus on climate action, highlighting the need for rapid transitions and increased funding. This underscores the imperative for financial institutions to adapt swiftly to heightened compliance requirements, aligning with evolving regulatory landscapes. Major economies, including the #EU and the USA, are implementing substantial regulatory changes to combat climate change. Directives such as the EU's corporate sustainability due diligence and the USA's commitment to climate action reflect a growing momentum toward transparent, accountable business practices globally. Editor: Rosita #ClimateAction #FinancialInstitutions #RegulatoryChanges #GlobalRisk #Sustainability #ESGDisclosure #EURegulations #USClimatePolicy #CorporateBehavior #Resilience

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Good summary of the Fed's Climate Scenario Analysis Report. In short, there remain significant gaps in the understanding of #climaterisk within some of the nation's most important financial systems. This stress test has created a tremendous opportunity for instituions to begin thinking through processes that are meaningful to both potential regulation reporting and business decisions making processes. Any viable solutions must rely on high resolution rigorous data, complete with industry specific value-added insights in order to fully evaluate, and report, on that risk.

Last year's 116-day streak of record-hitting temperatures highlights the urgency for financial institutions to address #climaterisks. Check out the latest Climate Risk Landscape Report — a comprehensive resource delving into the available tools for the #financesector to assess physical and transition climate risks. The report includes best practices, case studies, and recommendations to navigate the dynamic risk landscape. Read the full report: https://ow.ly/ix3r50RaxMB