Zurich Resilience Solutions, the commercial risk advisory and services unit of Zurich Insurance Group (Zurich), and KPMG Switzerland, a leading professional services firm, have formed a strategic collaboration to offer advisory services to address physical and transition risks, respectively, associated with climate change. The offering is initially available in Switzerland and later in other markets across Europe, the Americas and Asia Pacific regions.
The frequency, duration and severity of extreme weather events have increased and pose a growing threat to businesses and communities around the world. Consumer behavior is shifting towards more climate-friendly products and services, while investors and regulators are demanding more sustainable business practices and transparent reporting from companies.
In this evolving environment, it is increasingly important that businesses address both physical climate risks and transition risks. Transition risks include policy changes, reputational impacts, and shifts in market preferences, norms and technology. Having a holistic approach to climate change risk can help companies to better protect their assets, operations, employees and the communities in which they work, while complying with relevant reporting standards, frameworks and regulations.
This new offering combines Zurich Resilience Solutions’ physical risk assessment with KPMG’s transition risk assessment capabilities. It enables businesses to better understand and manage their exposures, while also strengthening physical and operational resilience, to develop transition strategies to a low-carbon economy, and to seize opportunities arising from this process.
At the core of the combined services is a customized climate scenario analysis to identify material exposures and assess financial impacts across the entire value chain. This will help businesses to evaluate and implement adaptation and mitigation measures to support their natural hazards-related loss prevention strategies, long-term climate change-related investment strategies, and regulatory sustainability reporting frameworks.
Sierra Signorelli, CEO Commercial Insurance at Zurich, said: “Our collaboration with KPMG is a great example of how we are delivering on our commitment to use our capabilities to help customers around the globe tackle the challenges of climate change. By working together with a like-minded organization that shares our values and combining our strengths, we can have a greater impact and drive meaningful change towards a more sustainable future.”
Marc Gössi, Global Client Lead Partner at KPMG Switzerland, said: “In the current landscape, effective climate risk management has developed into a paramount concern for businesses. The imperative lies in fortifying resilience across the entire value chain. By bringing together Zurich’s strong physical risk capabilities and the specialized expertise of KPMG professionals, we empower our clients to craft judicious and sustainable choices, underpinned by a comprehensive climate risk assessment that takes into account the broader picture.”