Briefing Book

The best thinking from Marsh & McLennan Companies on issues of immediate concern.

Our insights draw on experts from across Marsh, Guy Carpenter, Mercer and Oliver Wyman, along with Marsh & McLennan’s Global Risk Center and its research partners around the world.

Briefing Books

Climate Resilience

Rethinking how to better prepare and adapt to thrive in a changing climate.

  • Climate Resilience Handbook 2018
    Organizations must adopt a focus on climate resilience to ensure long-term viability.
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    Intensifying climate risks, including failure of climate change mitigation and adaptation, water supply crises and the transition to a low-carbon economy, are threatening the long-term viability of many businesses. Extreme weather events are increasing in cost as well as frequency and severity, and investors are beginning to ask hard questions about their exposure to climate risks. This report, compiled by Marsh & McLennan’s Global Risk Center — drawing on experts across Marsh, Guy Carpenter, Mercer and Oliver Wyman, along with other top research partners — highlights concise cases that will change the way you think about climate, and help your organization adopt a new focus on climate resilience.

  • How Climate Resilient Is Your Company?
    What is climate resilience — and why is it so important?
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    Companies have traditionally thought about climate change and environmental sustainability as reputational risks best managed through corporate social responsibility programs. In recent years, however, many firms have been caught unprepared as they begin to feel the effects of a changing climate and the transition to a lower-carbon economy.

    This report from Marsh & McLennan's Global Risk Center, drawing on the combined expertise of Marsh, Guy Carpenter, Mercer and Oliver Wyman, defines climate resilience as the capacity not only to survive, but also to adapt and thrive in the face of climate change and its direct and indirect effects. It outlines the impact of five major forces driving climate resilience to the top of executives' priority lists, and three practical ways that companies can begin to assess their climate resilience. It’s designed to help your company answer the question "are we climate resilient?"

  • Key Challenges for Banks in Assessing and Disclosing Climate-Change Risk
    There’s no established best practice for assessing the impact of climate change on bank performance.
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    Companies across all sectors, including financial services, are facing questions from investors, regulators, consumers, suppliers and employees that relate to a central issue: What are the implications of climate change risks and opportunities on financial performance? At this stage, there’s no established best practice for assessing the impact of climate change on bank performance. The recent release of a disclosure framework aims to facilitate the process; yet companies — particularly financial institutions — face a number of challenges in implementing the recommendations. Read more in this BRINK post authored by Mercer’s Jane Ambachtsheer, Partner, Mercer Investments and Member of the Financial Stability Board Task Force on Climate Related Financial Disclosures; Oliver Wyman Partners John Colas and Ilya Khaykin; and Oliver Wyman Principal Alban Pyanet.

  • Unlock Growth by Integrating Sustainability
    How to overcome the barriers to integrating sustainability as strategy.
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    At many companies, the overlap between corporate sustainability challenges and operational and strategic risks is growing. At the same time, there are often disconnects between established finance modeling and enterprise risk management processes and the discourse and expertise surrounding sustainability issues. Companies that do not close this gap may find themselves losing ground in an increasingly competitive global marketplace.

    This report, prepared by Marsh & McLennan’s Global Risk Center with the support of the GreenBiz Group and the Association for Financial Professionals (AFP), explores how companies are incorporating sustainability assessments into their financial modeling and enterprise risk management strategies and processes.

  • Supporting the Circular Economy Transition
    Achieving a sustainable level of resource consumption by moving toward a circular economy based on the principle of “reduce-reuse-recycle.”
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    A growing and wealthier global population is straining the biocapacity of our planet. In the densely populated and prosperous Netherlands, for example, residents consume more than three times what the Dutch ecosystem can produce, while globally they consume 1.7 times what the Earth can produce.

    A sustainable level of resource consumption can be achieved by moving toward a circular economy based on the principle of “reduce-reuse-recycle.” Underpinned by a move to renewable energy, the circular economy relies on products and services that minimize waste and, therefore, environmental damage and resource depletion. Circular businesses are “closing the loop” in supply chains by reusing end-of-lifecycle products as raw materials, sharing idle resources, using renewable resources and extending the product lifecycle.

    This Oliver Wyman report focuses on Netherlands, but the circular economy is an important topic all over the world.

  • Investing in a Time of Climate Change
    Three questions investors must answer to address climate-change risks and capitalize on related opportunities.
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    Investors are increasingly re-examining how they identify and manage risk. This involves articulating an investment time horizon — often multi-decade — and then defining which risks warrant consideration beyond standard measures such as market volatility. Within this context, climate change deserves special focus, given its potential impact and the narrow time frame that’s left to address it. Every investor must be prepared to answer these questions if we are to effectively tackle climate change risks and capitalize on related opportunities:

    1.        How big a risk/return impact could climate change have on our portfolio?

    2.        What are the key risks and opportunities?

    3.        What plan of action can ensure portfolio resilience?

    This Mercer report considers four climate scenarios and four climate risk factors to estimate the climate impact on potential returns. Read it and ask yourself, as a long-term investor, are you aware of your climate change risk exposure?