Environmental Risk Assessment

Introducing WTW’s environmental risk assessment services

WTW’s bespoke Environmental Risk Assessment Services are offered through our Asian Liability Risk Practice in partnership with our Australian environmental risk management specialists. Our team includes certified ISO 14001 Environmental Management System (EMS) auditors with over 10 years’ experience advising clients on their environmental risk exposures.

Rising environmental risks

While pandemic lockdowns have resulted in a temporary drop in carbon emissions, human environmental damage remains one of the top threats our world will face in the next ten years.^[1] Globally, the most significant environmental risks are likely to be biodiversity loss, a natural resources crisis, and climate action failure.^[2] Whilst closer to home, ninety-nine of the world’s top one hundred cities facing the greatest environmental challenges are located within the Asia region.^[3] As indicated in Figure 1 below, cities in Indonesia, India, China, Malaysia, Japan and the Philippines are facing high or extreme environmental risks now, and into the future.^[4]

The operational and insurance implications of environmental risks for Asian businesses are significant, including:

• Increased operational costs from higher power demand or from sourcing other reliable natural resources such as clean water supplies.^[4]
• Integration of environmental risk considerations into insurer’s risk management framework and insurance decision making.^[5]
• Greater ESG screening by underwriters when identifying new risks or renewing an existing risk.^[6]
• Increased reputational risk and financial penalties arising from environmental damage incidents.^[7]
• Greater accountability and transparency are required from investors and regulators to account for the full spectrum of potential environmental impacts and demonstrating environmental management credentials.^[4]

About WTW’s environmental risk assessment services

At WTW, our environmental risk assessment specialists work closely with our liability broking teams to provide clients with a comprehensive suite of environmental risk assessment solutions, including:

Why use WTW environmental risk assessments services

WTW’s Environmental Risk Assessments services significantly assist investors and financial institutions wishing to confirm the ‘green’ credentials of potential clients seeking funding on the basis of environmental sustainability and compliance with social and governance best practice. Other benefits include:

• Independent assessment of ESG reporting performance.
• Comprehensive evaluation of ESG reporting criteria.
• Adaptability to ensure inclusion of any unique ESG reporting requirements.
• User-friendly modulated survey questionnaire and guidance notes.
• Compliance with universally accepted international standards.
• Consultative approach facilitating client engagement through each phase of the assessment.
• Provision of recommendations to enhance internal ESG reporting standards and practices.

Download our brochure below for more information about the services we provide.

Footnotes

1. ‘Global risks in a COVID-19 world,’ International Organization for Standards (ISO), 2021. Return to article undo
2. ‘The Global Risks Report 2021,’ World Economic Forum, 16th Edition, 2021. Return to article undo
3. ‘Asia is Home to 99 the World’s 100 Cities Facing the Greatest Environmental Challenges, ’Time Magazine, 2021. Return to article undo
4. ‘Asian cities in the eye of environmental storm —global ranking, Environmental Risk Outlook 2021,Verisk Maplecroft, 2021. Return to article undo
5. ‘Information Paper on Environmental Risk Management (Insurers),’ Monetary Authority of Singapore, 2022. Return to article undo
6. ‘Preparing for a ‘green’ future in insurance, ’Asia Insurance Review, 2021. Return to article undo
7. ‘Contractors Pollution Liability Workshop, ’WTW Direct and Facultative, 2023. Return to article undo