Climate Risk & Financial Institutions - IDB Invest helps banks understand how climate risk impacts their business [1] - Banks are starting to understand the importance of taking care of nature [1] Sustainability & COP30 - The discussion is related to BloombergGreen and COP30, indicating a focus on environmental sustainability [1]

Event Overview - Bloomberg Green at COP30 will be held in São Paulo [1] - The event starts at 9:00 AM BRT [1] - The event will explore climate risk navigation, innovation investment, and impact driving [1] Participating Organizations - Hitachi Energy is participating in Bloomberg Green at COP30 [1] - Zurich is participating in Bloomberg Green at COP30 [1] - Amazon is participating in Bloomberg Green at COP30 [1] - Schneider Electric is participating in Bloomberg Green at COP30 [1]

Climate Risk and Insurance - AON is focused on four mega trends, including weather and climate risk, highlighting the devastating impact of storms like Hurricane Melissa in the Caribbean [3] - Catastrophe bonds (CAT bonds) are used to provide immediate financial support to countries affected by severe weather events, with a parametric CAT bond in place for Jamaica that will pay out over $150 million [5] - The CAT bond industry is approximately $55-60 billion, with insurance-linked securities reaching roughly $120 billion; AON is a leader in structuring CAT bonds, having placed around $18 billion [7] - Globally, nearly $370 billion in catastrophe losses occurred, with only about 40% (approximately $160 billion) being insured [12] AON's Financial Performance and Growth Drivers - AON reported a strong quarter with 7% organic growth and a 12% increase in adjusted EPS, driven by its commercial risk business [14] - Growth in the commercial risk business is fueled by the boom in AI and technology, specifically the construction of data center infrastructure [15][16] - The reinsurance business, which includes CAT bonds, also contributed to growth [17][18] - Workforce solutions, including healthcare and benefits, are another growth area, driven by companies seeking to attract and retain employees [18][19] Data Centers and AI - Hyperscalers spent nearly $70 billion in the last quarter on data center infrastructure build [16] - Data centers are a significant opportunity for the insurance industry, with companies expected to spend $500 billion over the next 5 years on infrastructure [20] - Traditional insurance is a $46 trillion industry, while data center companies are projected to spend $2 trillion in capital expenditures over the next five years, necessitating other capital sources [24] - AON has established a data center lifecycle program to provide end-to-end coverage and insight, from construction to cyber security, positioning the company to benefit from the AI trade [27][28]

Investment Strategy - Norway's sovereign wealth fund is leveraging AI to safeguard its portfolio against climate risk [1]

Investment Strategy & Risk Management - Norway's sovereign wealth fund, managing $2 trillion, is integrating AI to mitigate climate risk [1]

Climate Risk Management - South African actuaries introduced the country's first climate index [1] - The index aims to manage risks and losses from more frequent extreme weather events [1]

Investment Trends - Climate risk management is increasingly important for European institutional investors when assigning mandates [1] - Amundi executive highlights the growing importance of climate risk [1]

Core Insights - The research by Marsh highlights a significant gap between climate risk assessments and the adaptation strategies organizations are implementing [1] - Despite recognizing climate risks, organizations are not performing comprehensive cost-benefit analyses to support further investments in adaptation [1] Summary by Categories - **Climate Risk Awareness** - Organizations acknowledge the existence of climate risks [1] - **Adaptation Investment** - There is a lack of comprehensive cost-benefit analyses to justify adaptation investments [1] - This lack of analysis leads to significant gaps in the effectiveness of adaptation strategies [1]

Climate Risk Assessment - Many businesses are overlooking the full extent of their climate risk [1] - Even after experiencing the impacts of more extreme weather first-hand, businesses still overlook climate risk [1]

Companies will soon be expected to reflect climate risk in their profit and loss accounts, revealing to investors how floods, storms and droughts affect bottom lines https://t.co/I3QDaFNMwE ...