Willis Towers Watson and Qontigo Launch Pioneering STOXX Global Index Series that Quantifies Companies’ Climate Transition Risk
October 11, 2021 at 05:30 pm IST
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Qontigo and Willis Towers Watson launched an innovative family of climate transition indices driven by a next generation methodology that directly quantifies the impact of a Paris-aligned climate transition on equity valuations. The STOXX Willis Towers Watson Climate Transition Indices (CTI) help investors, governments and companies to manage risk, capture opportunities in their portfolios, align with goals of the Paris agreement and work toward net-zero targets. The CTI enables a more sophisticated way of managing climate risk that looks beyond carbon emissions, by making a forward-looking, bottom-up evaluation of transition risk and opportunity for each company. A proprietary Climate Transition Value at Risk (CTVaR) measure analyzes the impact on projected company cash flows of moving from a business-as-usual scenario — reflecting current policies — to a world where emissions pathways are fully aligned to the goals of the Paris agreement. By incorporating climate risk explicitly, this innovative approach allows investors to allocate in a robust, transparent and low-cost manner toward firms that will build — and benefit from — a future global economy that values and manages climate risks.
Willis Towers Watson Public Limited Company is a world leader in consulting, insurance brokerage and risk management software development. Revenues break down by activity as follows:
- human capital and social benefits consulting services (35.6%): consulting services in the organization, skills assessment, management and optimization of social benefits, compensation of executives and employees, etc. ;
- development of enterprise risk management solutions and services (31.9%): risk analysis, assessment consulting, effective risk management and anticipation services, design and development of software solutions for risk management. The group is also developing an insurance brokerage activity;
- risk/return balance management consulting services (17.7%): for investors, insurers and reinsurers. Additionally, the group offers insurance and reinsurance consulting services, financial management services, financing and investment strategies, as well as actuarial studies and expertise in mergers and acquisitions, etc., while developing software solutions for modeling and analysis of risks and financial activities;
- management and operation of a platform for the exchange and outsourcing of group health insurance plans and medical benefits (14.7%): allowing employees and retirees to choose the health coverage that meets their needs;
- other (0.1%).
Revenue is distributed geographically as follows: Ireland (1.7%), the United States (49.7%), the United Kingdom (20.5%) and other (28.1%).