Increasingly, insurers and brokers need to advise their clients on climate change policies. There are government funds available for green strategies, varying regulations on carbon related industry around the globe, plus activists keen to damage businesses who don’t tick the right boxes. Lots of benefits, plenty of risk. It makes sense to arm your company with as much knowledge as possible. Here’s the latest from WTW;
Willis Towers Watson, a leading global advisory, broking and solutions company today announces the transfer of the Climate Policy Initiative’s Energy Finance team and its world-leading modelling and data solutions to deliver low carbon transition analytics to financial institutions, corporates and public sector clients.
The CPI Energy Finance advisory team, based in London, California and Delhi, and Climate Value at Risk (CVaR) methodology, data and modelling tools have transferred to the Willis Towers Watson Climate and Resilience Hub, led by Rowan Douglas. The addition of CPI Energy Finance’s low carbon analytics, expertise and relationships will enable Willis Towers Watson to help organisations assess their market exposure to a low carbon transition process enabling both the public and private sectors to evaluate, navigate and communicate their own transition pathways in the years and decades ahead.
Together with its existing leadership in physical risks, this expands the scope of Willis Towers Watson’s Climate QuantifiedTM to encompass climate transition risk and provide full spectrum, integrated risk assessment and advisory capabilities.
John Haley, CEO, Willis Towers Watson, said “Following our recent acquisition of Acclimatise, we are delighted to welcome the Energy Finance team from CPI into our Climate and Resilience Hub. Measuring the impact on investments of the transition to a low carbon economy and developing new financial products to price risk and support the efficient allocation of capital is essential for an orderly and well-managed transition. Today’s announcement is part of our ongoing strategy of investing in skillsets and world class data and analytics to support our clients in forming a strategic response to climate change.”
David Nelson, Executive Director at CPI Energy Finance, said: “Over the last decade our work has shown that risk and uncertainty surrounding the financial impacts of a climate transition are possibly the greatest impediments to mitigating climate change. Our granular, asset-level models evaluate these risks by focusing on how financial markets would value resources, assets, businesses, tax revenues, and sovereign credit ratings as a result of climate transition driven changes to consumption, industry structure, and the global economy.
“We see no better way to scale and expand our offering than working with a world leader in risk management such as Willis Towers Watson and its exciting and growing Climate and Resilience Hub. We are delighted that they have recognized our expertise in identifying and quantifying the climate-related financial upside and downside risks of the transition and are looking forward to working with Willis Towers Watson in offering support analytics, advisory and transactions services, and Climate Value at Risk assessments and tools for companies, investors, public and private financial institutions, and governments.”
Professor Tom Heller, the Chairman of CPI’s board who will join WTW as a strategic adviser, said: “Accounting well for the growing impacts of climate transition risk has become one of the most important governance issues for sovereigns, central banks, financial institutions and corporates around the world. And it will only become more pressing as the pace of policy reform, technology innovation and public sentiment accelerate, and asset prices adjust.
“Synergies in expertise between WTW’s Climate and Resilience Hub, CPI Energy Finance, and the new team at Acclimatise provide a significant opportunity for countries and firms to plan for orderly, efficient and fair transitions to more sustainable and productive economies, combining advances in analytical metrics with targeted financial instruments, insurance products and investment strategies to manage the physical and financial risks associated with climate change.”
Climate Policy Initiative’s global team, based in six locations around the world, remains an independent non-profit led by its current board of directors.