WTW, a global advisory, broking, and solutions company, has unveiled Climate Quantified, a new technology set to help quantify the financial impact of climate change with “unprecedented precision”.
By analysing the interactions between climate risk factors and their impact on business models, including physical risks, supply chain vulnerabilities and regulatory changes, WTW’s new Software as a Service (SaaS) online tool reportedly 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.”
Some of the key capabilities of Climate Quantified is to support Chief Risk Officers and Chief Sustainability Officers, with a focus on building resilience to physical risks and managing the transition to net zero.
The tool also quantifies asset property damage, business interruption and exposure value today and under future scenarios associated with natural catastrophes and commodity prices.
For each product category and scenario, Climate Quantified measures the impact of transition risk on revenue and costs, plus the impact of managing or passing those costs through to customers. It is also designed to support business planning, due diligence, strategic decision-making and compliance with evolving regulatory requirements.
Ben Fidlow, Global Head, Core Analytics, WTW, concluded, “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.”
