Management Consulting
Aon
Full Credential Description
Aons Transition Performance Index was developed to assist businesses in navigating their transition to net-zero emissions, addressing the specific challenge of inconsistent data metrics that insurers face when underwriting based on clients' carbon emissions reductions. The insurance industry has struggled with disparate metrics, which complicates the ability to compare and assess firms' transition plans effectively. This inconsistency can hinder clients' ability to secure necessary insurance capacity, particularly for those in hard-to-abate sectors. In a notable case, Aon utilized the Transition Performance Index to support a client that was having difficulty accessing insurance due to negative perceptions regarding its transition credentials. By leveraging the Index, the client was able to demonstrate that their investment in green technology allowed them to capture and store 70% of their total CO2 footprint. This evidence provided insurers with the confidence needed to offer long-term insurance capacity, which in turn freed up capital for the client to further invest in their transition to net-zero. The Transition Performance Index not only aids in tracking a company's progress toward a greener future but also aligns with the Sustainability Accounting Standards Board's taxonomy and disclosure standards. This alignment enhances the credibility of the data presented to insurers, facilitating better investment and underwriting negotiations. Overall, Aons tailored solution has proven essential in helping clients navigate the complexities of the insurance market while advancing their sustainability goals.