Willis Tower Watson commits to net-zero greenhouse emissions
With a deadline of 2050, the pledge covers both WTW’s business operations and discretionary investment portfolio.
Willis Tower Watson (WTW) has committed to delivering net-zero greenhouse gas emissions by 2050 — with at least a 50% reduction by 2030 — across its business operations, while the broker’s investment division announced targeting a similar goal for its fully discretionary delegated portfolios.
To minimize its environmental impact, WTW reports it will improve energy efficiency across its operations, utilize virtual meeting technology, promote recycling, minimize waste-to-landfill, purchase environmentally responsible office supplies and encourage associates to adopt environmentally responsible habits. The pledge also includes a goal of 100% renewable energy supplies across the company’s real estate portfolio.
“Climate change and its growing impact on society represent a significant global challenge. As one of the world’s leading risk advisors and experts in assessing and mitigating climate risk, Willis Towers Watson is committed to supporting measures aimed at helping to tackle climate change,” CEO John Haley said in a release. “The need to manage climate risk and support an orderly transition to a low-carbon, resilient economy is no longer solely a matter of conscience but a strategic and financial imperative. Today’s announcement further reinforces our company’s commitment to addressing this global challenge.”
Integrating climate risk into investments
Working to reach net-zero in its discretionary portfolio is consistent with financial goals set by WTW clients regarding climate change and its potential impact on returns across asset classes, according to Craig Baker, WTW’s global chief investment officer.
“We have already embedded this in our investment process and ultimately in the portfolios we are managing and stewarding,” Baker said in a release. “Being strategically ahead of a net-zero transition will, in our opinion, significantly improve risk-adjusted returns for our clients. This will come from two sources: ‘Better beta’ due to more effective stewardship and ‘alpha’ as the mispricing of climate issues is resolved. We think that understanding this transition will be one of the biggest sources of alpha across all asset classes and that this alpha opportunity is likely to be greatest in the next few years.”
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