Aon Launches Dedicated Unit to Drive Climate Analytics and Advisory into Multiple Sectors

LONDON, 4 May 2023 - Aon plc (NYSE: AON), a leading global professional services firm, today launched its Climate Risk Advisory team to provide physical risk diagnostics and advisory services to help financial institutions, public sector entities and firms with large real estate holdings to make better decisions about their climate-related financial risks.

More than 400 natural catastrophes caused $313 billion of damage worldwide in 2022. As climate change drives new extreme weather records, organizations need to better quantify the impact of climate risk. To help clients meet their reporting and disclosure requirements, reduce risk and drive growth, Climate Risk Advisory will provide:

• Forward-looking diagnostics for a range of climate scenarios, applying climate hazard data to individual asset locations to understand key geographies at risk today and in the future.
• Climate advisory to build a holistic, end-to-end approach to risk modeling and management, from scoping the exposure to communicating and acting upon strategies.

The team combines catastrophe and climate change models from Aon's Impact Forecasting and third-party vendors, with analytical expertise from across Aon's capital, climate and credit specialties. Drawing on a wide range of sources gives clients a highly informed and customized view of risk. It also draws upon Aon's 14 global academic collaborations, whose emerging climate research provides an independent view of risk and informs the development of the firm's catastrophe models.

Liz Henderson, previously co-head of Reinsurance Solutions' U.S. Catastrophe Management team, has been named leader of Climate Risk Advisory, reporting to Joe Monaghan, global growth leader of Reinsurance Solutions.

Monaghan said: "In launching Climate Risk Advisory, Aon recognizes how financial institutions may benefit greatly from the catastrophe and climate expertise, modeling and solutions we have developed and honed over several decades for the re/insurance sectors. Financial institutions can now tap our ongoing investment in our Impact Forecasting models and evolving scientific research, which will help them to navigate volatility and build business resilience."

Henderson added: "I am excited to be leading a team whose insight has become increasingly important to insurers and reinsurers, and can now be effectively applied to a wider set of Aon clients. Our initial focus will be on financial institutions and public sector entities, which have an immediate need to understand their climate risks. Our team takes modeling data and brings it to life with approximately 30 years of experience collaborating with insurer C-suite leaders who manage these issues every day. Our advice goes beyond analysing the results of any individual approach, to helping organizations develop holistic climate risk programs that can navigate the inherent uncertainty in climate change to make better decisions on risk management."

Aon has already deployed climate risk consulting capabilities for several organizations, including several large mortgage lenders in the United States. In addition to financial institutions and governments, Aon is also bringing these capabilities to companies in real estate, agriculture and health solutions.

Climate Risk Advisory provides physical risk solutions that are complemented by Aon's broader capabilities around ESG and the transition to net zero.

For more information about Aon's climate solutions, please visit https://www.aon.com/insights/topics/climate-change-sustainability.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better - to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

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Andrew Wragg

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