The move underscores Aon’s commitment to environmental sustainability and aligns with its broader mission of shaping decisions that change sustainability policies and enhance carbon credit development on a worldwide scale.
The IETA, a prominent non-profit organisation, is dedicated to establishing a robust international framework for trading in greenhouse gas emission reductions. The organization’s core principles revolve around striking a delicate balance between economic efficiency, environmental integrity, and social equity, making it a crucial player in the global efforts to combat climate change.
Aon’s decision to join the IETA highlights its dedication in the fight against climate change. By becoming the first member to offer risk capital capabilities, Aon aims to contribute significantly to the development and growth of carbon markets worldwide. The move aligns perfectly with Aon’s overarching mission to “protect and enrich the lives of people around the world” by actively participating in efforts that address the pressing challenges of our time.
As Aon steps into the new role within the IETA, it is poised to influence critical decisions and initiatives that have far-reaching implications for environmental sustainability, economic efficiency, and social equity on a global scale. The partnership also underscores the growing importance of risk management and insurance companies in the transition towards a more sustainable and environmentally conscious future.
In an official statement released by Aon, the company said: “Innovation in data, analytics and risk transfer solutions enable Aon to help clients accelerate their investments in decarbonisation and climate resiliency and aid in the transition to a lower-carbon economy.”
Aon also highlighted its intention to deepen its understanding of carbon market dynamics, emerging regulations, and trends, while also actively participating in the creation of market-driven climate solutions aimed at reducing greenhouse gas emissions. These solutions are expected to play a pivotal role in enabling organisations to effectively work towards achieving their net-zero targets.
Speaking about the partnership, Dirk Forrister, president and CEO of IETA, explained: “Carbon credits are an important part of the journey to net zero. As with any emerging market, the need for clear information, actionable advice and robust support is vital for companies seeking to leverage the potential of carbon markets.
“We welcome Aon’s determination to assist business’ journey to reduce emissions and transition to a lower-carbon economy.”
North America leader for Aon’s Climate team, Natalia Moudrak, will join IETA’s Voluntary Carbon Markets working group, and Stephanie Betts, head of alliances, coalitions and reporting for Aon, will join the organisation’s Natural Climate Solutions working group.
Both will support IETA’s drive toward transparency and enhanced governance of the carbon market in both emerging markets and developed economies.
Moudrak said, “The voluntary carbon market is rapidly expanding and represents a significant opportunity to drive environmental and social impacts on the climate transition.
“Risk solutions can help bring an additional layer of confidence to this market, helping accelerate investments into high-integrity decarbonization solutions.
“Aon’s insights into developments in the voluntary carbon market allow us to better advise our clients on their transition to a low-carbon future as we navigate new forms of volatility.”
Betts commented, “Climate risks are complex and interconnected and require companies, associations and governments to work together to mitigate. Active collaboration has never been more important between the public and private sectors. Compelling market incentives will help drive a large-scale reallocation of capital, creating new opportunities and stronger outcomes.
She added, “We believe that a thriving, trusted carbon market is a cornerstone of this new economy and we look forward to collaborating with IETA and its members on these efforts.”