Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Operational
• Strategic

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Traditional ERM does not generally address the myriad external implications of greenhouse gases and the global increase in CO2 emissions
• Social and environmental issues impacting shareholder value
• Public distrust of large corporations
• Regulatory scrutiny
• Supply chain issues related to sustainability

Mitigation Strategies

• Using sustainability as a platform for risk management to supplement traditional risk management techniques
• Incorporating sustainability in design process to spur innovation and address customer needs
• Improving business efficiency through sustainability initiatives (reduced material requirements, energy, toxic chemicals, etc.)
• Working with suppliers and contractors on sustainability issues to control costs and ensure supply availability
• Addressing emerging sustainability risks such as climate change, social justice, resource depletion, brand damage, shareholder actions, and disclosure of environmental liabilities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Requiring suppliers to meet minimum requirements for sustainable performance (e.g., sustainable forestry, minimum wage and working conditions)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products and clean energy technologies

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient products
• Clean energy technologies (wind power, solar energy, etc.)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Resource scarcity
• Demographic changes
• Social challenges
• Sustainable Development Goals (SDGs)

Climate Goals & Targets

Environmental Challenges

• Measuring impact of investments
• Identifying material companies, products, and services related to impact goals
• Deciding on metrics to measure impact

Mitigation Strategies

• Development of The Investment Impact Framework by the University of Cambridge Institute for Sustainability Leadership (CISL)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs), The Investment Impact Framework

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Development Goals (SDGs)
• Social Impact
• Governance

Environmental Achievements

• Portfolio carbon emissions c.36% lower than benchmark
• Portfolio companies 2.5% more carbon-efficient per unit of output than benchmark
• 43% reduction in scope 1 and scope 2 CO2e emissions from 2019 to 2020 (Aon's own operations)

Social Achievements

• Significant contributions to solving global challenges, including COVID-19 vaccine development
• Donated over $10.6M and pro bono hours to underserved communities
• ~34,000 colleagues completed Aon’s Unconscious Bias training

Governance Achievements

• Commitment to achieve Net Zero emissions by 2050 within fully delegated portfolios, with a 50% reduction by 2030
• ISO 14401 Environmental Management System Certification for largest office buildings

Climate Goals & Targets

Environmental Challenges

• Climate change
• Social inequalities impacting global supply chains

Mitigation Strategies

• Investing in companies developing solutions to environmental and social problems
• Engagement tools to drive change at the corporate level
• Commitment to Net Zero emissions by 2050

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 5% of U.S. addressable spend was with diverse suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Sustainable Development Goals (SDGs)

Certifications: ISO 14401

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15

The fund's investments contribute to various SDGs through their business activities.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental
• Social
• Diversity, Equity, and Inclusion (DE&I)

Environmental Achievements

• Nearly one-quarter of respondents stated their company will prioritize GHG emissions reduction in future ESG initiatives.
• Higher maturity in waste management and supply chain optimization strategies.

Social Achievements

• More than 50% of companies are improving their flexible and remote or virtual-working policies.
• Nearly one-third of new initiatives introduced by companies in 2023 pertained to reskilling or upskilling the workforce.
• Companies report having a high degree of maturity in corporate social responsibility (CSR) reporting and philanthropic initiatives.

Governance Achievements

• 60% of companies involve their entire board in ESG decisions.
• Listed companies are more likely to have clearly defined ESG metrics and links to C-suite performance.

Climate Goals & Targets

Environmental Challenges

• Linking ESG with business priorities (more than 40% of respondents report being in the very early stages).
• Organizational alignment to ESG strategy.
• Availability of skilled talent.
• Data quality and funding availability.
• Talent shortage and difficulties linking diversity and inclusion to business goals.
• Unclear human capital strategy (hiring, developing, rewarding and retaining diverse talent).

Mitigation Strategies

• Embedding sustainability into processes with management buy-in and involving employees.
• A comprehensive talent strategy and robust workforce reskilling program.
• Insurers can de-risk projects, match capital for clean tech, and provide data insights.
• Developing a clear vision for DE&I and aligning board and management.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Environmental Metrics

ESG Focus Areas

• Responsible Investment
• ESG Integration
• Sustainability Risk
• Impact Investing
• Mission Related Investing
• Socially Responsible Investing

Governance Achievements

• Implementation of a remuneration policy consistent with regulatory obligations, business strategy, and risk management principles.

Climate Goals & Targets

Environmental Challenges

• Difficulty in considering principal adverse impacts due to proportionality relative to firm size and data availability.

Mitigation Strategies

• Keeping the decision under review and regularly assessing the situation; potential future publication of principal adverse impact considerations.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN PRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Diversity, Equity, Inclusion, and Belonging (DEIB)

Environmental Achievements

• 52% of organizations travelled less to meet environmental goals
• 44% of organizations implemented carbon offsetting programs for travel
• 47% of organizations travelled differently (e.g., using more sustainable transportation) to meet environmental goals

Social Achievements

• 50% of respondents addressed equity in benefits and services related to global mobility as part of their ESG policy
• Organizations are offering health programs and services to support the physical and mental wellbeing of their employees while on the road.

Governance Achievements

• 53% of organizations created a Global Mobility Strategy
• 49% of organizations created equity in benefits and services related to travel/international assignments/remote working

Climate Goals & Targets

Environmental Challenges

• Inflation/rising prices
• Talent shortages
• Political unrest/warzones
• Growing awareness of equitable treatment
• Compliance burdens
• Cost containment
• Safety concerns (decreasing in priority)
• Ensuring appropriate salaries and allowances for international assignments

Mitigation Strategies

• Offering remote working
• Skills-based hiring
• Reviewing global benefit offerings against DEIB strategy
• Implementing clear internal and external checks for compliance
• Updating safety protocols
• Harmonizing business travel insurance programs
• Creating a policy for business travel and remote working
• Benchmarking pay data for international assignments

Supply Chain Management

Climate-Related Risks & Opportunities