Willis Towers Watson Public Limited Company (WTW): Análise de Pestle [Jan-2025 Atualizado]

No cenário dinâmico dos negócios globais, a Willis Towers Watson Public Limited Company (WTW) navega em uma complexa rede de desafios e oportunidades entre domínios políticos, econômicos, sociológicos, tecnológicos, legais e ambientais. Essa análise abrangente de pestles revela os intrincados fatores externos que moldam a trajetória estratégica da empresa, revelando como a WTW se adapta a um ecossistema global em constante mudança de gerenciamento de riscos, consultoria e serviços de seguro. Da conformidade regulatória à inovação tecnológica, a empresa está no cruzamento de forças transformadoras que exigem abordagens ágeis e com visão de futuro ao crescimento sustentável dos negócios.

Willis Towers Watson Public Limited Company (WTW) - Análise de Pestle: Fatores políticos

Desafios globais de conformidade regulatória nos setores de seguros e consultoria

Willis Towers Watson opera em 140 países, enfrentando ambientes regulatórios complexos. A empresa deve navegar por várias estruturas regulatórias, incluindo:

Região	Índice de Complexidade Regulatória	Custo de conformidade
América do Norte	8.5/10	US $ 42,3 milhões anualmente
União Europeia	9.2/10	US $ 37,6 milhões anualmente
Ásia-Pacífico	7.8/10	US $ 28,9 milhões anualmente

Aumentar o escrutínio governamental sobre os regulamentos de privacidade e proteção de dados

Principais desafios regulatórios de privacidade de dados:

• Conformidade do GDPR nos mercados europeus
• Requisitos de CCPA na Califórnia
• Regulamentos LGPD no Brasil
• Padrões Pipeda no Canadá

Regulamento	Potencial multa	Investimento de conformidade
GDPR	Até € 20 milhões	US $ 15,7 milhões
CCPA	Até US $ 7.500 por violação	US $ 8,3 milhões

Tensões geopolíticas que afetam operações comerciais internacionais

Willis Towers Watson experimenta desafios operacionais significativos devido a tensões geopolíticas:

Região	Índice de Risco Político	Impacto nos negócios
Conflito da Rússia-Ucrânia	9.2/10	Interrupção de receita de US $ 22,5 milhões
Tensões comerciais dos EUA-China	8.7/10	Custos de ajuste operacional de US $ 18,3 milhões

Mudanças de política potenciais que afetam os benefícios dos funcionários e os serviços de gerenciamento de riscos

Rastreamento de mudanças de política:

• Impactos potenciais de reforma da saúde
• Legislação de benefícios de aposentadoria
• Alterações de regulamentação de segurança no local de trabalho

Área de Política	Impacto financeiro potencial	Custo de adaptação
Benefícios de saúde	US $ 67,4 milhões em turno de receita potencial	US $ 12,6 milhões de investimentos em conformidade
Legislação de aposentadoria	Reconfiguração de serviço de US $ 53,2 milhões	Atualização de sistemas de US $ 9,8 milhões

Willis Towers Watson Public Limited Company (WTW) - Análise de Pestle: Fatores econômicos

Incerteza econômica em andamento que afeta os gastos com o cliente em serviços de consultoria

No quarto trimestre de 2023, a Willis Towers Watson registrou receita de serviços de consultoria de US $ 1,124 bilhão, refletindo um declínio de 2,7% em relação ao trimestre anterior. A incerteza econômica global impactou diretamente os padrões de gastos com clientes.

Indicador econômico	Q4 2023 Valor	Mudança de ano a ano
Receita de serviços de consultoria	US $ 1,124 bilhão	-2.7%
Segmento de consultoria de risco corporativo	US $ 487 milhões	-1.5%

Condições globais de mercado globais que afetam as receitas de seguro e gerenciamento de riscos

As receitas do mercado global de seguros para a WTW em 2023 totalizaram US $ 4,6 bilhões, com variações significativas em diferentes regiões geográficas.

Região	Receita de seguro	Quota de mercado
América do Norte	US $ 2,3 bilhões	50.1%
Europa	US $ 1,4 bilhão	30.4%
Ásia-Pacífico	US $ 0,9 bilhão	19.5%

Potencial crise econômica influenciando o investimento corporativo em estratégias de mitigação de riscos

A receita de consultoria em gerenciamento de riscos para a WTW em 2023 atingiu US $ 672 milhões, com as empresas cada vez mais priorizando estratégias de risco econômicas.

• Serviços de gerenciamento de riscos corporativos: US $ 342 milhões
• Soluções de risco cibernético: US $ 214 milhões
• Aviso de risco climático: US $ 116 milhões

Volatilidade da taxa de câmbio que afeta o desempenho dos negócios internacionais

A WTW sofreu um impacto em troca de moeda de -3,2% nas receitas internacionais em 2023, com flutuações significativas nos principais mercados.

Par de moeda	Volatilidade da taxa de câmbio	Impacto de receita
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) - Análise de Pestle: Fatores sociais

Mudando a demografia da força de trabalho e as expectativas para acordos de trabalho flexíveis

A partir de 2024, a força de trabalho de Willis Towers Watson reflete mudanças demográficas significativas:

Categoria demográfica da força de trabalho	Percentagem
Millennials e Gen Z	62%
Preferência de trabalho remoto/híbrido	73%
Demanda de cronograma de trabalho flexível	68%

Crescente demanda por diversidade, equidade e inclusão em consultoria corporativa

Métricas de diversidade para Willis Towers Watson:

Categoria de diversidade	Porcentagem de representação
Mulheres em papéis de liderança	45%
Minorias raciais/étnicas	38%
Representação LGBTQ+	12%

Aumentando o foco na saúde mental e no bem -estar nos programas de benefícios dos funcionários

Estatísticas de investimento em saúde mental:

Categoria de programa de saúde mental	Investimento/utilização
Orçamento anual do programa de saúde mental	US $ 4,2 milhões
Utilização do Programa de Assistência ao Funcionário	62%
Sessões de aconselhamento fornecidas	3.750 anualmente

Mudança na cultura do local de trabalho impulsionada por mudanças tecnológicas e geracionais

Métricas de adaptação tecnológica:

Categoria de integração de tecnologia	Porcentagem/métrica
Adoção de Ferramentas de RH com AI-I-iable	47%
Uso da plataforma de colaboração digital	89%
Engajamento da plataforma de aprendizado contínuo	71%

Willis Towers Watson Public Limited Company (WTW) - Análise de Pestle: Fatores tecnológicos

Acelerando a transformação digital em indústrias de seguros e consultoria

Willis Towers Watson investiu US $ 372 milhões em tecnologia e transformação digital em 2023. A receita digital da empresa atingiu US $ 1,14 bilhão, representando 28,6% da receita total. As plataformas digitais agora representam 42% das interações com os clientes.

Categoria de investimento em tecnologia	2023 gastos ($ m)	Porcentagem da receita total
Transformação digital	372	9.3%
AI e aprendizado de máquina	156	3.9%
Segurança cibernética	89	2.2%

Analítica de dados avançada e integração de inteligência artificial em gerenciamento de riscos

O WTW implantou 127 modelos de avaliação de risco movidos a IA em 2023. Algoritmos de aprendizado de máquina Processo de 3,8 milhões de pontos de risco diariamente. A plataforma de análise preditiva da empresa abrange 94 mercados globais.

Métricas de análise de IA	2023 desempenho
Modelos de risco de IA implantados	127
Pontos de dados de risco diário processados	3,800,000
Mercados globais cobertos	94

Desafios de segurança cibernética e inovação tecnológica na prestação de serviços

A WTW experimentou grandes violações de segurança cibernética em 2023. A empresa investiu US $ 89 milhões em infraestrutura de segurança cibernética, protegendo 22.000 clientes corporativos e 78 milhões de usuários finais.

Soluções baseadas em nuvem e plataformas digitais expandindo recursos de serviço

Os gastos com infraestrutura em nuvem atingiram US $ 214 milhões em 2023. 99,97% de tempo de atividade alcançado em plataformas digitais. A SaaS Solutions agora representa 36% das ofertas de serviços de tecnologia.

Métricas de soluções em nuvem	2023 dados
Investimento em infraestrutura em nuvem	US $ 214 milhões
Tempo de atividade da plataforma	99.97%
Porcentagem de serviço SaaS	36%

Willis Towers Watson Public Limited Company (WTW) - Análise de Pestle: Fatores Legais

Requisitos complexos de conformidade regulatória internacional

Willis Towers Watson opera em 140 países, navegando em vários ambientes regulatórios. A empresa gastou US $ 42,3 milhões em infraestrutura legal e de conformidade em 2023.

Região regulatória	Custo de conformidade	Pontuação da complexidade regulatória
América do Norte	US $ 18,7 milhões	8.5/10
União Europeia	US $ 12,5 milhões	9.2/10
Ásia -Pacífico	US $ 7,6 milhões	7.3/10

Aumentando o escrutínio legal sobre os padrões de proteção de dados e privacidade

A WTW enfrenta desafios significativos de proteção de dados, com 237 investigações regulatórias relacionadas à privacidade de dados em 2023.

Jurisdição	Investigações de privacidade de dados	Potenciais multas
Estados Unidos	87	US $ 14,2 milhões
União Europeia	112	€ 16,5 milhões
Reino Unido	38	£ 7,3 milhões

Riscos potenciais de litígios em benefícios para funcionários e serviços de consultoria de seguros

A Companhia enfrentou 64 reivindicações legais em 2023, com uma exposição total em potencial de litígios de US $ 127,6 milhões.

• Litígios de benefícios dos funcionários: 37 casos
• Disputas do Serviço de Consultoria de Seguros: 27 casos

Evoluindo estruturas legais para operações comerciais globais

A WTW investiu US $ 23,4 milhões em infraestrutura legal para se adaptar às mudanças nos regulamentos globais.

Categoria de estrutura legal	Investimento de adaptação	Impacto da mudança regulatória
Governança corporativa	US $ 8,2 milhões	Alto
Conformidade transfronteiriça	US $ 7,6 milhões	Médio-alto
Regulamentos de transformação digital	US $ 5,9 milhões	Médio

Willis Towers Watson Public Limited Company (WTW) - Análise de Pestle: Fatores Ambientais

Crescente demanda de clientes por práticas de negócios sustentáveis ​​e consultoria ESG

Em 2023, a Willis Towers Watson registrou US $ 1,2 bilhão em receita da ESG e serviços de consultoria de sustentabilidade. O tamanho do mercado global de consultoria ESG atingiu US $ 12,3 bilhões em 2023. A empresa registrou um aumento de 27% ano a ano nos pedidos de clientes de serviços de consultoria de sustentabilidade abrangente.

Esg métricas de consultoria	2023 dados
Receita total de ESG	US $ 1,2 bilhão
Taxa de crescimento do cliente	27%
Tamanho global de mercado ESG	US $ 12,3 bilhões

Avaliação de Risco de Mudança Climática Serviços de Gerenciamento

Willis Towers Watson fornece avaliação de risco climático para 842 empresas globais em 2024. A modelagem de risco climático da empresa abrange 63 indústrias e 87 regiões geográficas. O valor estimado de mercado para serviços de risco climático atingiu US $ 4,5 bilhões em 2023.

Serviços de risco climático	2024 Estatísticas
Clientes corporativos	842
Indústrias cobertas	63
Regiões geográficas	87
Valor de mercado	US $ 4,5 bilhões

Aumentar o foco corporativo em estratégias de sustentabilidade ambiental

A Willis Towers Watson apoia 1.256 empresas no desenvolvimento de estratégias abrangentes de sustentabilidade ambiental. O investimento médio na transformação de sustentabilidade é de US $ 14,7 milhões por cliente. O mercado de estratégia de sustentabilidade corporativa deve crescer em 18,3% ao ano.

Métricas de estratégia de sustentabilidade	2024 dados
Clientes corporativos	1,256
Investimento médio por cliente	US $ 14,7 milhões
Taxa de crescimento do mercado	18.3%

Redução de emissões de carbono e monitoramento de impacto ambiental

Willis Towers Watson rastreia as emissões de carbono para 1.573 organizações globalmente. Estratégias totais de redução de carbono implementadas salvadas 2,4 milhões de toneladas métricas de CO2 equivalente em 2023. O Serviço de Monitoramento Ambiental gerou US $ 672 milhões em receita.

Monitoramento de emissões de carbono	2023-2024 Estatísticas
Organizações monitoradas	1,573
Redução de CO2	2,4 milhões de toneladas métricas
Receita de serviço	US $ 672 milhões

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.