Corporate resilience for climate change

Businesses are increasingly becoming aware of the risks they face as a result of climate change. Company boards and executives are considering these risks and determining how they can be managed effectively.

On Tuesday 30 March, Aon co-presented a panel discussion with MinterEllisonRuddWatts, designed to provide businesses with an overview of climate change risks they should be considering and suggested tools to manage these risks, including:
 

  • Physical and transitional risks, including regulatory change;

  • Liability risks for companies and D&Os;

  • How the risks impact on corporate governance;

  • Understanding and managing risks;

  • How the insurance market is responding.
     

Below a summary of key points from the session

  • Risks associated with climate change are broad: They go beyond physical risks and encompass transitional risks such as regulatory and market changes and legal liability risks. You should seek to understand these risks and how they will affect the businesses that you lead and manage, your suppliers and your customers.

  • Risks are increasing: They are manifesting now but are increasing as the climate continues to warm, government intervention increases and domestic and international markets ramp up their response to climate change. We expect increasing regulatory intervention in New Zealand following the issue of the Climate Change Commission's first round of advice to the government in May this year.  

  • Responding to climate change risks for smaller to medium sized organisations may be more difficult: These organisations will likely have a more complex path ahead of them in reporting and managing climate risk. They may not be subject to the same level of regulatory scrutiny and oversight driving change (e.g. they are unlikely to be captured by MBIE’s proposed mandatory financial reporting obligations) and they may have a reduced capital and capacity to cease opportunities and adjust to a changing market. 

  • Take the time to properly assess the risks to your business: There are steps you and your business can take to understand, manage and adapt to the risks presented by climate change. Understanding the risks is key to their management and, it is important that you collect data from a range of sources, consult widely with stakeholders and seek expert advice. 

  • Flexibility and openness to change will benefit your business: Organisations that are managing climate change risks in an agile and dynamic way and are looking for opportunities, will have increased resilience and are on the pathway to success.
     

Session resources
 
View | The webinar slides here.
Watch | The webinar recording here.
 

Aon | Our commitment

Aon is committed to achieving net-zero emissions by 2030 and implementing environmental, social and governance best practices internally to promote corporate resiliency and sustainability to prepare for the ongoing challenge we face in relation to emerging risks. Moreover, we are committed to helping our clients do the same.

 How can we make a difference?

 

The insurance and risk industry is leading the way in rebuilding communities – collaborating with academia, charities and councils every day to tackle climate change, one of the most perilous emerging risks of our time. Each of us — wherever we live and work — can play a part.
 

 


Aon’s contributing to recycling | Aon have partnered with Will&Able, a Social Enterprise enabling New Zealanders with disabilities to gain meaningful employment by making and selling eco-friendly cleaning products using 100% recycled milk bottles. Empty bottles can be dropped off to any Aon branch, where they are collected and delivered back to a Will&Able factory, so they can be upcycled again to make fresh, new product.

  • Will&Able is the only eco-product in New Zealand that is made from 100% recycled milk bottles;

  • By recycling and re-using empty bottles they are closing the sustainability 'loop';

  • Aon are proud to support Will&Able and contribute to a community we’re proud to be in

Aon’s contributing to biodiversity | Aon are proud supporters of ‘Operation Nest Egg’, a successful Kiwi breeding program established to hatch eggs in captivity, rear chicks to a weight where they can defend themselves against predators and then release them back into the wild. Aon’s donations also go towards assisting with much needed infrastructure and on-going pest control and monitoring of New Zealand's threatened species.

  • Aon supporting Ngatapa Ecological Trust | Read Here

  • Aon supporting Wingspan | Read Here

  • Aon supporting The National Kiwi Hatchery | Read Here

  • Supporting Kiwi Hatchery and WingspanWatch Here
     

Talk to Aon today about corporate resilience and sustainability.

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