Willis Towers Watson Public Limited Company (WTW): Análisis PESTLE [Actualizado en Ene-2025]

En el panorama dinámico de los negocios globales, Willis Towers Watson Public Limited Company (WTW) navega por una compleja red de desafíos y oportunidades en dominios políticos, económicos, sociológicos, tecnológicos, legales y ambientales. Este análisis integral de la mano presenta los intrincados factores externos que dan forma a la trayectoria estratégica de la compañía, revelando cómo WTW se adapta a un ecosistema global de gestión de riesgos, consultoría y servicios de seguro en constante cambio. Desde el cumplimiento regulatorio hasta la innovación tecnológica, la compañía se encuentra en la intersección de fuerzas transformadoras que exigen enfoques ágiles y avanzados para el crecimiento empresarial sostenible.

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores políticos

Desafíos de cumplimiento regulatorio global en los sectores de seguros y consultoría

Willis Towers Watson opera en 140 países, enfrentando entornos regulatorios complejos. La compañía debe navegar por múltiples marcos regulatorios, incluidos:

Región	Índice de complejidad regulatoria	Costo de cumplimiento
América del norte	8.5/10	$ 42.3 millones anuales
unión Europea	9.2/10	$ 37.6 millones anuales
Asia-Pacífico	7.8/10	$ 28.9 millones anuales

Aumento del escrutinio del gobierno sobre las regulaciones de privacidad y protección de datos

Desafíos regulatorios de privacidad de datos clave:

• Cumplimiento de GDPR en mercados europeos
• Requisitos de CCPA en California
• Regulaciones LGPD en Brasil
• Estándares de Pipeda en Canadá

Regulación	Potencial bien	Inversión de cumplimiento
GDPR	Hasta € 20 millones	$ 15.7 millones
CCPA	Hasta $ 7,500 por violación	$ 8.3 millones

Tensiones geopolíticas que afectan las operaciones comerciales internacionales

Willis Towers Watson experimenta desafíos operativos significativos debido a las tensiones geopolíticas:

Región	Índice de riesgo político	Impacto comercial
Conflicto ruso-ucraína	9.2/10	$ 22.5 millones de interrupción de ingresos
Tensiones comerciales entre Estados Unidos y China	8.7/10	$ 18.3 millones Costos de ajuste operativo

Cambios de política potenciales que afectan los beneficios de los empleados y los servicios de gestión de riesgos

Seguimiento del cambio de política:

• Impactos potenciales de reforma de la salud
• Legislación de beneficios de jubilación
• Cambios de regulación de seguridad en el lugar de trabajo

Área de política	Impacto financiero potencial	Costo de adaptación
Beneficios de atención médica	$ 67.4 millones de posibles cambios de ingresos	$ 12.6 millones de inversiones de cumplimiento
Legislación de jubilación	$ 53.2 millones en la reconfiguración del servicio	Actualización de sistemas de $ 9.8 millones

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores económicos

Incertidumbre económica continua que afecta el gasto de los clientes en servicios de consultoría

En el cuarto trimestre de 2023, Willis Towers Watson informó ingresos por servicios de consultoría de $ 1.124 mil millones, lo que refleja una disminución del 2.7% del trimestre anterior. La incertidumbre económica global ha afectado directamente los patrones de gasto de los clientes.

Indicador económico	Valor Q4 2023	Cambio año tras año
Ingresos de servicios de consultoría	$ 1.124 mil millones	-2.7%
Segmento de consultoría de riesgo corporativo	$ 487 millones	-1.5%

Fluctuando las condiciones del mercado global que afectan los ingresos de la gestión de los seguros y los riesgos

Los ingresos del mercado global de seguros para WTW en 2023 totalizaron $ 4.6 mil millones, con variaciones significativas en diferentes regiones geográficas.

Región	Ingreso del seguro	Cuota de mercado
América del norte	$ 2.3 mil millones	50.1%
Europa	$ 1.4 mil millones	30.4%
Asia-Pacífico	$ 0.9 mil millones	19.5%

Posible recesión económica que influye en la inversión corporativa en estrategias de mitigación de riesgos

Los ingresos por consultoría de gestión de riesgos para WTW en 2023 alcanzaron $ 672 millones, y las corporaciones priorizan cada vez más estrategias de riesgo rentables.

• Servicios de gestión de riesgos empresariales: $ 342 millones
• Soluciones de riesgo cibernético: $ 214 millones
• Aviso de riesgo climático: $ 116 millones

Volatilidad del tipo de cambio de divisas que afecta el desempeño comercial internacional

WTW experimentó un impacto en el cambio de divisas de -3.2% en los ingresos internacionales en 2023, con fluctuaciones significativas en los mercados clave.

Pareja	Volatilidad del tipo de cambio	Impacto de ingresos
USD/EUR	±4.1%	-2.3%
USD/GBP	±3.7%	-1.9%
USD/JPY	±5.2%	-3.6%

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores sociales

Cambiando la demografía de la fuerza laboral y las expectativas de los arreglos de trabajo flexibles

A partir de 2024, la fuerza laboral de Willis Towers Watson refleja cambios demográficos significativos:

Categoría demográfica de la fuerza laboral	Porcentaje
Millennials y Gen Z	62%
Preferencia laboral remota/híbrida	73%
Demanda flexible del horario de trabajo	68%

Creciente demanda de diversidad, equidad e inclusión en consultoría corporativa

Métricas de diversidad para Willis Towers Watson:

Categoría de diversidad	Porcentaje de representación
Mujeres en roles de liderazgo	45%
Minorías raciales/étnicas	38%
Representación LGBTQ+	12%

Aumento del enfoque en la salud mental y el bienestar en los programas de beneficios para empleados

Estadísticas de inversión en salud mental:

Categoría del programa de salud mental	Inversión/utilización
Presupuesto anual del programa de salud mental	$ 4.2 millones
Utilización del programa de asistencia para empleados	62%
Sesiones de asesoramiento proporcionadas	3.750 anualmente

Cambiar la cultura del lugar de trabajo impulsada por cambios tecnológicos y generacionales

Métricas de adaptación tecnológica:

Categoría de integración de tecnología	Porcentaje/métrico
Adopción de herramientas de recursos humanos habilitadas para AI	47%
Uso de la plataforma de colaboración digital	89%
Compromiso de la plataforma de aprendizaje continuo	71%

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores tecnológicos

Acelerar la transformación digital en industrias de seguros y consultoría

Willis Towers Watson invirtió $ 372 millones en tecnología y transformación digital en 2023. Los ingresos digitales de la compañía alcanzaron los $ 1.14 mil millones, lo que representa el 28.6% de los ingresos totales. Las plataformas digitales ahora representan el 42% de las interacciones del cliente.

Categoría de inversión tecnológica	2023 gastos ($ M)	Porcentaje de ingresos totales
Transformación digital	372	9.3%
AI y aprendizaje automático	156	3.9%
Ciberseguridad	89	2.2%

Análisis de datos avanzado e integración de inteligencia artificial en la gestión de riesgos

WTW implementó 127 modelos de evaluación de riesgos con IA en 2023. Los algoritmos de aprendizaje automático procesan 3.8 millones de puntos de datos de riesgo diariamente. La plataforma de análisis predictivo de la compañía cubre 94 mercados globales.

AI Analytics Metrics	2023 rendimiento
Modelos de riesgo de IA implementados	127
Puntos de datos de riesgo diario procesados	3,800,000
Mercados globales cubiertos	94

Desafíos de ciberseguridad e innovación tecnológica en la prestación de servicios

WTW experimentó infracciones de ciberseguridad cero cero en 2023. La compañía invirtió $ 89 millones en infraestructura de ciberseguridad, protegiendo a 22,000 clientes corporativos y 78 millones de usuarios finales individuales.

Soluciones basadas en la nube y plataformas digitales de expansión de capacidades de servicio

El gasto en la infraestructura de la nube alcanzó los $ 214 millones en 2023. 99.97% de tiempo de actividad logrado en plataformas digitales. SaaS Solutions ahora representan el 36% de las ofertas de servicios de tecnología.

Métricas de soluciones en la nube	2023 datos
Inversión en la infraestructura en la nube	$ 214 millones
Tiempo de actividad de la plataforma	99.97%
Porcentaje de servicio SaaS	36%

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores legales

Requisitos de cumplimiento regulatorio internacional complejo

Willis Towers Watson opera en 140 países, navegando por múltiples entornos regulatorios. La compañía gastó $ 42.3 millones en infraestructura legal y de cumplimiento en 2023.

Región reguladora	Costo de cumplimiento	Puntaje de complejidad regulatoria
América del norte	$ 18.7 millones	8.5/10
unión Europea	$ 12.5 millones	9.2/10
Asia Pacífico	$ 7.6 millones	7.3/10

Aumento del escrutinio legal sobre la protección de datos y los estándares de privacidad

WTW enfrenta desafíos significativos de protección de datos, con 237 investigaciones regulatorias relacionadas con la privacidad de los datos en 2023.

Jurisdicción	Investigaciones de privacidad de datos	Potencios multas
Estados Unidos	87	$ 14.2 millones
unión Europea	112	16,5 millones de euros
Reino Unido	38	£ 7.3 millones

Posibles riesgos de litigios en los beneficios de los empleados y los servicios de asesoramiento de seguros

La Compañía enfrentó 64 reclamos legales en 2023, con una posible exposición de litigios potenciales de $ 127.6 millones.

• Litigio de beneficios para empleados: 37 casos
• Disputas de servicio de asesoramiento de seguro: 27 casos

Evolucionando marcos legales para operaciones comerciales globales

WTW invirtió $ 23.4 millones en infraestructura legal para adaptarse a las regulaciones globales cambiantes.

Categoría de marco legal	Inversión de adaptación	Impacto del cambio regulatorio
Gobierno corporativo	$ 8.2 millones	Alto
Cumplimiento transfronterizo	$ 7.6 millones	Medio-alto
Regulaciones de transformación digital	$ 5.9 millones	Medio

Willis Towers Watson Public Limited Company (WTW) - Análisis de mortero: factores ambientales

Creciente demanda de clientes de prácticas comerciales sostenibles y consultoría ESG

En 2023, Willis Towers Watson reportó $ 1.2 mil millones en ingresos de ESG y servicios de consultoría de sostenibilidad. El tamaño del mercado global de consultoría de ESG alcanzó los $ 12.3 mil millones en 2023. La compañía ha visto un aumento de 27% año tras año en las solicitudes de los clientes de servicios de asesoramiento integral de sostenibilidad.

Métricas de consultoría de ESG	2023 datos
Ingresos totales de ESG	$ 1.2 mil millones
Tasa de crecimiento del cliente	27%
Tamaño del mercado global de ESG	$ 12.3 mil millones

Servicios de evaluación y gestión de riesgos del cambio climático

Willis Towers Watson proporciona una evaluación de riesgos climáticos para 842 corporaciones globales en 2024. El modelado de riesgos climáticos de la compañía cubre 63 industrias y 87 regiones geográficas. El valor estimado de mercado para los servicios de riesgo climático alcanzó los $ 4.5 mil millones en 2023.

Servicios de riesgo climático	2024 estadísticas
Clientes corporativos	842
Industrias cubiertas	63
Regiones geográficas	87
Valor comercial	$ 4.5 mil millones

Aumento del enfoque corporativo en estrategias de sostenibilidad ambiental

Willis Towers Watson apoya a 1,256 empresas en el desarrollo de estrategias integrales de sostenibilidad ambiental. La inversión promedio en transformación de sostenibilidad es de $ 14.7 millones por cliente. Se proyecta que el mercado de la estrategia de sostenibilidad corporativa crezca al 18.3% anual.

Métricas de estrategia de sostenibilidad	2024 datos
Clientes corporativos	1,256
Inversión promedio por cliente	$ 14.7 millones
Tasa de crecimiento del mercado	18.3%

Reducción de emisiones de carbono y monitoreo del impacto ambiental

Willis Towers Watson rastrea las emisiones de carbono para 1.573 organizaciones a nivel mundial. Las estrategias de reducción de carbono total implementadas ahorraron 2.4 millones de toneladas métricas de CO2 equivalente en 2023. El servicio de monitoreo ambiental generó $ 672 millones en ingresos.

Monitoreo de emisiones de carbono	2023-2024 Estadísticas
Organizaciones monitoreadas	1,573
Reducción de CO2	2.4 millones de toneladas métricas
Ingresos por servicio	$ 672 millones

Willis Towers Watson Public Limited Company (WTW) - PESTLE Analysis: Social factors

Employee well-being, especially mental health, is the primary focus of the top-ranked health and safety risk.

You need to recognize that the social contract between employer and employee has fundamentally changed, moving well-being from a perk to a core fiduciary risk. Health and safety remains the top overall risk concern for directors and officers globally, with a massive 80% of respondents in the 2024/2025 Global Directors' and Officers' Survey considering it a very or extremely important concern.

Here's the quick math: while physical safety is still critical, the focus has shifted to the psychological toll of work. Of those highly concerned about health and safety, a significant 28% specifically identified the workplace impact on mental health and wellbeing as their number one concern. This means mental health is defintely a top issue for 2025, directly correlating with higher absenteeism and health claims costs. For WTW, this translates into a booming market for its Health and Benefits, and Employee Wellbeing consulting services.

• 92% of U.S. workers demand emotional/psychological well-being value.
• Depression and anxiety cost the global economy approximately 12 billion work days annually.
• The average global medical cost trend is projected to remain high, continuing the double-digit trend from recent years.

Concern over breach of human rights in business operations has risen to 62% of directors in 2025.

Honesty, the speed at which social risks have climbed the board agenda is unprecedented. The concern over a breach of human rights within or by business operations is no longer a fringe issue; it's a mainstream corporate risk. In the 2025 Global Directors' and Officers' Survey, a staggering 62% of directors now consider this a very or extremely important concern.

To be fair, this is a dramatic increase from just 23% of directors who held this level of concern back in 2021. This jump reflects greater regulatory scrutiny, especially in supply chains, and the immediate reputational damage that social media can inflict. WTW's Risk and Broking segment benefits from this, as organizations seek to mitigate exposure through political risk insurance and enhanced due diligence on environmental, social, and governance (ESG) factors.

The shift to hybrid work models necessitates a more personalized employee value proposition (EVP) for digital talent.

The hybrid work model is here to stay, but it's not one-size-fits-all. About 50% of the global workforce is now considered truly hybrid-a mix of onsite and remote work. This shift forces companies to redesign their Employee Value Proposition (EVP) to be dynamic and highly personalized. A static EVP will quickly become obsolete, especially as AI and automation reshape job roles.

This is a clear opportunity for WTW's Human Capital and Benefits segment, which accounts for approximately 58.9% of the company's total revenue. Companies are actively redesigning total rewards programs-pay, benefits, wellbeing, and careers-to support this new mix of workers. The move toward greater choice is clear:

Metric	Status in 2025	Projected Status in 3 Years
Employers offering moderate or high benefit choice globally	38%	76%
Companies requiring employees onsite at least 1 day/week	Over 66%	Stable/Increasing
Companies with a 3-day onsite requirement (most prevalent)	28%	N/A

You need to offer flexibility, not just mandate office days. The goal is to make benefits as individual as the employee's needs, optimizing choices based on their income, family situation, and financial security.

Political polarization is driving a greater need for corporate cultural and employee experience consulting.

Political polarization is no longer just a political risk; it's an internal operational risk that impacts workforce cohesion. WTW's 2025 Political Risk Index highlights that affective polarization-the degree to which individuals view political opponents with hostility-is at a historic high globally.

The polarization is felt on a personal basis, challenging how colleagues perceive one another, and creating complex issues for risk assessment and workforce management. This internal friction drives demand for WTW's consulting services focused on Diversity, Equity, and Inclusion (DEI), Employee Experience, and cultural transformation. The United States is a unique hot spot, being the only country where all three types of polarization-affective, ideological, and elite-have risen sharply and simultaneously over the past 15 years.

This risk is second only to geostrategic competition as a top concern for organizations, so companies are urgently seeking guidance on how to manage internal cultural divides without alienating customers or talent. You must focus on creating a unified corporate culture that transcends external political divides.

Willis Towers Watson Public Limited Company (WTW) - PESTLE Analysis: Technological factors

You're looking at Willis Towers Watson Public Limited Company (WTW)'s technology landscape, and the core takeaway is this: the firm is shifting from simply managing risk to actively shaping the risk/capital/people technology ecosystem. The strategic focus in 2025 is on AI-driven client solutions and aggressive talent acquisition, but this also means navigating a massive surge in cyber risk and a brutal talent war.

Almost half (46%) of multinational HQs plan to expand AI use for employee benefits management.

The demand for Artificial Intelligence (AI) in Human Capital and Benefits is no longer theoretical; it's a near-term spending priority for WTW's client base. According to a WTW survey from April 2025, 46% of multinational company headquarters are prioritizing the expansion of employee-facing technology, including AI, to improve benefits navigation and decision-making. This is a clear opportunity for WTW to sell its data-driven solutions.

This focus is driven by the need for personalized employee experiences and cost management. Here's the quick math: with 52% of multinational HQs considering data-driven insights a high or top priority for enhancing the employee benefits experience, WTW's proprietary tools, like its AI-enabled analytics for health and benefits, are now a critical, high-margin product line. This is a direct revenue driver.

WTW launched a Fintech and Digital Assets Taskforce to address complex, emerging risks like AI and digital assets.

The firm has recognized that the rapid evolution of financial technology (Fintech) and digital assets (like cryptocurrency and blockchain) creates complex, systemic risks that traditional insurance and consulting models can't handle. To be fair, this is a smart, offensive move. WTW launched its global Fintech and Digital Assets Taskforce in late 2024, and its impact is now being felt in 2025 as a key differentiator.

This taskforce is not just about risk transfer (insurance); it's about providing bespoke consultancy for emerging areas, including the risks associated with AI deployment itself. They are positioning themselves to consult on the next generation of financial infrastructure and risk management, putting them ahead of competitors still focused on legacy systems. It's a classic move to create a new market category, and it's defintely paying off in client engagement.

Increased automation and remote work models elevate the risk of cyberattacks and information security breaches.

While technology is an opportunity, it's also the firm's single largest non-financial risk. The shift to remote and hybrid work models, coupled with WTW's deep integration into client systems, makes them a prime target for sophisticated cybercrime. Ransomware remains the key driver of cyber insurance claims, accounting for 60% of large claims in 2025.

The threat is escalating: Gartner predicts that 45% of organizations will experience attacks on their software supply chain by the end of 2025. Plus, attackers are now using generative AI to scale their efforts; for instance, phishing attacks rose 202% in the second half of 2024. This means WTW must continuously invest to secure its own infrastructure and its clients' data, a cost that will only rise.

2025 Cyber Risk Metric	Value/Statistic	Impact on WTW
Global Cyber Insurance Market Value (2025)	$20.56 billion	Market opportunity for WTW's Corporate Risk & Broking segment.
Supply Chain Attack Prediction (2025)	45% of organizations affected	Elevates professional liability risk for consulting on third-party security.
Ransomware Share of Large Claims (2025)	60%	Focuses WTW's risk advisory on a single, high-severity threat.

The shortage of digital talent in AI and machine learning remains a key challenge for all organizations in 2025.

The talent war for AI and machine learning (ML) specialists is intense, and it directly constrains WTW's ability to build and deploy the very solutions its clients are demanding. Job postings for AI specialist roles are growing 3.5x faster than for all other jobs, leading to a projected 50% hiring gap in the AI/ML talent pool.

This shortage forces WTW to pay a premium for skills. They are actively responding, with almost half (47%) of companies globally offering differentiated rewards, benefits, and/or talent programs specifically for their digital talent. This increases operating expenses, but it's a necessary investment to maintain their competitive edge in data-driven consulting.

Here's what the talent gap means for compensation and strategy:

• 72% of IT leaders cite AI skills as a crucial gap.
• 47% of companies globally differentiate rewards for digital talent.
• AI-enabled roles are becoming standard across all business functions.

Finance: Track the year-over-year percentage increase in compensation for AI/ML roles versus the firm-wide average by the end of Q4 2025.

Willis Towers Watson Public Limited Company (WTW) - PESTLE Analysis: Legal factors

Regulatory Risk as a Top-Tier Concern in 2025

For a global consulting and brokerage firm like Willis Towers Watson Public Limited Company (WTW), regulatory risk is a permanent, high-level threat. It's not a surprise that regulatory breach consistently ranks as a top concern for directors and officers (D&Os) globally, holding the number 4 position on the overall top seven risk list in the 2024/2025 surveys.

This isn't just theoretical; 74% of survey responders cited regulatory breach as a very or extremely important concern. The sheer volume of new rules, especially in financial services, requires continuous, costly compliance updates. What this estimate hides is the personal accountability-directors are increasingly exposed to penalties and actions for compliance failures, especially as political landscapes shift and enforcement becomes more stringent globally.

Increased Enforcement in Cybersecurity and Data Management

The regulatory environment in key markets like the UK and Australia is rapidly evolving to address cyber threats, directly impacting WTW's data-heavy business model. New legislation is granting regulators significantly more power and imposing higher penalties, making data management failures much more expensive.

In the UK, the forthcoming Cyber Security and Resilience Bill (planned for 2025) will update the Network and Information Systems (NIS) Regulations, broadening its scope to include crucial service providers like data centers and managed service providers. The maximum fine for a breach is set to increase to up to GBP 17 million or 4% of the worldwide turnover of an undertaking, whichever is higher. Meanwhile, Australia's Privacy Act reforms and the Cyber Security Act 2024 have strengthened the Office of the Australian Information Commissioner's (OAIC) powers, including the ability to issue infringement notices for 'administrative failures,' such as a simple failure to have a compliant privacy policy.

Jurisdiction	2025 Regulatory Change	Key Enforcement Impact	Maximum Potential Fine (Approx.)
UK	Cyber Security and Resilience Bill (Planned 2025)	Broadened scope (e.g., data centers), proactive investigation powers.	Up to GBP 17 million or 4% of worldwide turnover.
Australia	Privacy Act Reforms, Cyber Security Act 2024	Enhanced OAIC powers, statutory tort for serious invasion of privacy (commencing by June 2025).	Significant civil penalties for companies (e.g., up to $49.5 million for Online Safety Act breaches).
European Union (GDPR)	Continued rigorous enforcement.	Fines up to 4% of global annual turnover for serious breaches.	Up to €20 million or 4% of worldwide annual turnover.

The Rise of Civil Litigation and Accountability

The legal scrutiny on corporate conduct is intensifying, moving beyond just regulator-imposed fines. Civil litigation, which covers class actions and shareholder suits, has entered the D&O top seven risk list for the first time since 2018, ranking at number six in the 2024/2025 survey. This is a critical signal that accountability is rising. 63% of directors and officers view civil litigation as a very or extremely important concern.

This trend is fueled by social inflation-the tendency for higher jury awards-and the spread of class action mechanisms, especially in data breach cases. For a large, publicly traded company, the risk of a shareholder class action following a major data breach is real, as seen in Australia where an 18% share price drop followed one such incident. The legal landscape is defintely becoming more claimant-friendly.

The High Cost of Global Regulatory Compliance

Operating across dozens of jurisdictions means navigating a complex, expensive patchwork of laws, particularly for data privacy (General Data Protection Regulation or GDPR) and financial conduct. The financial penalties for non-compliance are staggering and continue to set records in 2025.

The maximum fine for a serious GDPR violation remains up to €20 million or 4% of a company's worldwide annual turnover, whichever is greater. This is not just a theoretical number; the five largest GDPR fines in the first half of 2025 alone totaled over €3 billion. The largest single fine to come into effect at the start of 2025 was €1.2 billion against Meta for insufficient safeguards on international data transfers. This shows that compliance is not just about avoiding the €20 million statutory cap, but about mitigating business-crippling, multi-billion-euro penalties.

The key areas driving this cost are:

• Data protection and privacy, which is a top-two litigation concern for 2025.
• ESG-related lawsuits, claiming failure to disclose material climate risks.
• AI-related litigation, particularly around 'AI washing' (misrepresenting AI capabilities).

Next step: Finance needs to draft a 13-week cash view by Friday, incorporating a stress-test scenario that includes a $50 million regulatory fine and a major civil litigation reserve.

Willis Towers Watson Public Limited Company (WTW) - PESTLE Analysis: Environmental factors

The environmental landscape for Willis Towers Watson Public Limited Company (WTW) in 2025 is a study in profitable complexity: its core business thrives on climate risk, but the political will to regulate that risk is softening in key markets. You need to focus on the shift from pure environmental (E) risk to the broader social (S) and governance (G) factors, especially in executive pay, to capture the next wave of consulting revenue.

WTW provides climate risk assessment services to 842 global corporations, demonstrating strong client demand

Client demand for quantifying climate-related financial risk remains robust, despite the political headwinds. WTW is positioned well here, offering proprietary tools and advanced analytics to help clients manage both physical climate risk and climate transition risk. The firm currently provides climate risk assessment services to an impressive 842 global corporations, which highlights the non-negotiable need for risk quantification among large, sophisticated businesses. This client base, spanning over 140 countries, drives demand for WTW's specialized consulting and risk transfer solutions, like parametric insurance, which offer rapid liquidity following extreme weather events.

Here's the quick math: with global insured losses from natural catastrophes consistently exceeding $100 billion per year, the need to translate climate science into financial impact is a core business driver for WTW's Risk and Broking segment.

The political focus on climate change is softening in some major markets, like the US and UK, due to backlash

Honestly, the political tailwind for climate regulation has diminished in 2025, creating a tricky operating environment. In the United States, the new administration has actively dismantled much of the country's climate progress, and the Securities and Exchange Commission (SEC) climate-related disclosure rules were scrapped following legal challenges.

The UK is also seeing a breakdown in the political consensus on climate action. For example, the leader of the Conservative Party has pledged to scrap the 2008 Climate Change Act, which is a serious regression from previous cross-party support. This softening of regulatory pressure, while reducing compliance urgency for some clients, still doesn't eliminate the underlying physical and transition risks. So, WTW must pivot its messaging from 'compliance' to 'resilience' and 'long-term value protection.'

Social risks, including diversity, equity, and inclusion (DEI), are gaining prominence over traditional environmental risks

The focus of directors and officers (D&O) is shifting away from environmental (E) risk toward social (S) risks, according to WTW's 2024/2025 Global Directors' and Officers' Survey Report. Climate change concern among D&O respondents fell from 55% in the 2024 report to 52% in the 2025 report, with pollution actually ranking higher than climate change for the second year running. Social factors are now seeing an increase in attention, especially in the US:

• Health and safety remains the number one risk globally for D&Os.
• Despite pushback, 57% of S&P 500 companies still use DEI metrics in their executive pay plans.
• Social issues like human capital management and culture are now more salient risks for directors than climate-related litigation.

The focus on ESG metrics in executive pay is shifting from mere prevalence to defintely ensuring quality and impact

The conversation around Environmental, Social, and Governance (ESG) metrics in executive compensation has matured past simply having a metric. The new focus is defintely on quality and strategic materiality-meaning the metrics must align with the company's core business objectives and long-term value creation.

WTW's 2025 analysis of 871 companies across Europe and North America confirms this shift. Globally, 81% of companies now use at least one ESG metric in their incentive plans. But investors are now scrutinizing the rigor of these targets. In North America, ESG metrics overall yield notably higher payouts than financial metrics, which raises questions about the stretch of the goals set. This is an opportunity for WTW's executive compensation advisory business to help clients design truly measurable and material ESG goals.

Region	Companies Analyzed (2025)	Companies Using $\ge$1 ESG Metric	Average Payout of ESG Metrics (S&P 500)
Global	1,057 (2024 Study Data)	81%	N/A
North America & Europe	871 (2025 Analysis)	N/A	Broadly aligned with financial metrics
United States (S&P 500)	N/A	77%	123% of target (vs. 113% for financial metrics)

Finance: draft a 13-week cash view by Friday, focusing on the impact of a 5% increase in global regulatory compliance costs.