Aviation climate risk:
Helping you take off into aresilient future

Climate change is a significant threat to theaviation industry, impacting operational
resilience, financial performance andstakeholder trust.
Momentum in the aviation industry is moving towards
increased transparency and more ambitious climate
targets. As an industry with high fixed costs and volatile
profitability, it is more important than ever that aviationcompanies have a keen understanding of the short tolong-term financial implications of their climate risk.
Increasingly, aviation risk managers are being asked todevelop robust climate risk strategies which meet thechallenges of a rapidly changing operating environment.

Top three climate risk questions for aviation
risk managers:
1. How exposed is your business — assets and supply
chain to physical climate risks, such as floods,
catastrophic storms, heat and wildfires undervarious warming scenarios?
2. How will the transition to a low-carbon economy
impact demand for your products and services, orfuel and commodity pricing? What impact will newtechnology such as Sustainable Aviation Fuel haveon your business?
3. What is your role in responding to emerging climate
regulation and what is the impact of these regulations
on your risk management strategy?
At WTW, we provide you with a holistic picture of climate
risk across your assets and value chain.

Are you ready to justify your climate risk mitigationplans for the next three to five years?

We are specialists in:

WTW is here to help you play a leading role inunderstanding your organization’s climate risks
and building protections for it.

• Climate risk data & analytics

Our Climate Practice has the tools and expertise toidentify and quantify the business impact of climate risk
on your cash flows to better guide you in developing abespoke climate risk management strategy.

wtwco.com• Physical and transition risk & resilience• Natural catastrophe modelling & risk engineering• Climate policy & regulation• Alternative risk transfer & financing• Adaptation planning• Transition planning• Enterprise risk management

Our integrated approach translates physical and transition risk into financial impact

Physical risk

Transition risk

Identify, rank andprioritize future
hazards to real assets
and portfolios

Identify risk drivers,
benchmark against
sector/peers, andprioritize risks

Assess the financial
impact of physical risks
for portfolio / individual
assets including thevalue chain

Assess the future
cashflows affected bytransition risks across abusiness model

Identify measures
to avoid, reduce,transfer or retain risks
from physicalclimate change

Support businessplanning to minimizerisks and capture
opportunities arisingfrom the transition

Identify

Quantify

ManageOutcome
Implement a response
to climate risks that
protects financial
performance, andinforms reporting anddisclosure

WTW difference on climate
Focus on risk quantification and management

Transparent and customizable models

We quantify financial impact to help you
manage risk, capitalize on opportunities
and preserve long-term value.
Our approach will inform decisions on
cost-effective risk financing, mitigation,adaptation and investment strategies.

We offer complete transparency on ourdata, assumptions, and methodologies,
and our models are customized to alignwith your business for greater accuracy.

Physical risk: comprehensive and high resolution
Industry specialization and regulatory expertise
Our company-wide focus on industryspecialization results in a deeper
understanding of your climate-relatedrisks and opportunities, with benchmarks
against your peers. Our regulatory expertise
supports you in meeting the growing
demands for climate risk disclosure.
Technology & consulting
Our interactive tools and tailored dashboards
provide straightforward, high-quality data
output, and our experts cut through thecomplexity to help you understand theimpacts of climate change on your business.

Our natural hazard and climate data
encompasses 20 hazards and 100 indicesat a high spatial resolution. We apply
approximately 20 CMIP6 climate models
to assess each hazard to reduce uncertainty.
Transition risk: beyond carbon and forward-looking
We provide granular analysis of thetransition factors affecting future
cash flows. Our models cover over 8,000
listed equities and dynamics acrossall major sectors and geographies.

Aviation climate risk/2Contacts
Holly Teal
Climate Practice Lead,
North America
holly.teal@wtwco.com

Chris Au
Climate Practice Lead,
Asia Pacificchristoper.au@wtwco.com

Charlotte Dubec
ESG Lead,
Global Aviation & Space
charlotte.dubec@wtwco.com

Bridget Donley
Strategy and Execution Lead
North America,
Global Aviation & Space
bridget.donley@wtwco.com

Henry Adair
Regional Director
Middle East and Africa,
Global Aviation & Space
henry.adair@wtwco.com

Carlos Sanchez
Climate Practice Lead,
EMEA
carlos.sanchez@wtwco.com

Menel Dib
Account Executive Europe,
Global Aviation & Space
menel.dib@wtwco.com

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https://www.wtwco.com/en-GB/Notices/global-regulatory-disclosures It is a regulatory requirement for us to consider our local licensing
requirements. The information given in this publication is believed to be accurate at the date of publication shown at the top of this document.
This information may have subsequently changed or have been superseded and should not be relied upon to be accurate or suitable after
this date.
This publication offers a general overview of its subject matter. It does not necessarily address every aspect of its subject or every productavailable in the market and we disclaimer all liability to the fullest extent permitted by law. It is not intended to be, and should not be, used toreplace specific advice relating to individual situations and we do not offer, and this should not be seen as, legal, accounting or tax advice.
If you intend to take any action or make any decision on the basis of the content of this publication you should first seek specific advice froman appropriate professional. Some of the information in this publication may be compiled from third party sources we consider to be reliable,
however we do not guarantee and are not responsible for the accuracy of such. The views expressed are not necessarily those of WTW.
Copyright WTW 2024. All rights reserved.
About WTWAt WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view andlocal expertise of our colleagues serving 140 countries and markets, we help you sharpen your strategy, enhance organizational resilience,motivate your workforce and maximize performance. Working shoulder to shoulder with you, we uncover opportunities for sustainable success— and provide perspective that moves you. Learn more at wtwco.com.

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