WTW launches Climate Quantified risk technology

10 June 2024 Consultancy.uk 2 min. read
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WTW has launched a new tool to give companies the capability to quantify the financial impact of climate change on their operations. The next-generation Climate Quantified technology will also help monitor the climate’s impacts on a company’s assets.

Peter Carter, head of the climate practice at WTW, explained, “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."

Software-as-a-Service (SaaS) is a licensing and distribution model, used by providers to deliver subscription software applications over the internet. Climate Quantified is an online SaaS tool which 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, WTW says it “brings a new level of clarity to support strategic and operational decision-making”.

WTW launches Climate Quantified risk technology

By analysing the interactions and interdependencies between climate risk factors and their impact on business models, Climate Quantified offers a number of key capabilities to support chief risk officers and chief sustainability officers in their work. These include enabling companies to quantify the financial impacts of climate change on a portfolio of assets and products; quantifying asset property damage, business interruption and exposure value today and under future scenarios associated with drought (and water stress), tropical cyclone, riverine flood and commodity prices; and supporting business planning, due diligence, strategic decision-making and compliance with evolving regulatory requirements.

Ben Fidlow, global head of core analytics at WTW, added, “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.”

Willis Towers Watson, branded as WTW, is a British-American multinational company providing insurance and advisory services. It was named in the 2024 Top Consulting Firms in the UK ranking by Consultancy.uk – scoring gold in the ESG category, and platinum in risk and compliance.