Aon plc has announced it has joined the Asia Investor Group on Climate Change (AIGCC), marking its entrance into an investor-led network committed to advancing climate-conscious investment strategies across Asia.
AIGCC, a regional body focused on awareness and action regarding climate risks and low-carbon opportunities, brings together institutional investors to support sustainable investments and manage the financial risks associated with climate change.
As a member, Aon aims to support AIGCC’s mission by contributing to the design of climate solutions focused on market resilience and sustainability.
With expertise in data analytics and risk transfer, Aon will work with the group to help clients navigate the risks of climate change while facilitating the transition to net-zero emissions.
Dr Tom Mortlock (pictured), Aon’s head of climate analytics for the Asia-Pacific region, said that addressing climate risks requires collaboration across asset owners, insurers, lenders, and governments.
He added that the energy transition will require both insurance and financing to address the impacts of climate change and foster economic growth.
“Insuring and financing the energy transition is essential to mitigate the impacts of climate change while driving economic growth. As investor sentiment continues to shift capital towards a greener future, actionable insights, and appropriate risk transfer solutions are crucial for companies looking to seize these opportunities,” he said.
AIGCC CEO Rebecca Mikula-Wright has welcomed Aon to the group, highlighting that industry involvement is crucial for meaningful climate action across Asia.
“Industry participation is essential to achieving meaningful progress on climate action across Asia, and we welcome Aon’s contributions that will enhance our collective impact. We look forward to working together with Aon to drive forward solutions for a low-carbon and climate-resilient future, fostering meaningful and accelerated progress,” she said.
Aon’s 2024 Climate and Catastrophe Insight report underscores the insurance gap in Asia, showing that only 14% of economic losses in the region were insured in 2023.
With climate change accelerating risk exposure in several areas, this underinsurance heightens the volatility for investments in climate-sensitive regions.
In a separate initiative, Aon has joined forces with the Australian Research Council’s (ARC) Centre of Excellence for the Weather of the 21st Century, a research centre hosted at Monash University.
The collaboration aims to support advanced climate research in the Indo-Pacific, focusing on how climate change is affecting weather patterns and how these insights can be translated into practical solutions for the insurance industry.
