Howden, a leading international insurance broker and risk management group, has launched an innovative platform aimed at helping clients better evaluate and manage climate risks.
The platform, known as is powered by advanced Microsoft technologies, including Azure, Microsoft 365, and Dynamics 365.
The need for this new product arises from the increasing pressure faced by asset owners, investors, and stakeholders to manage risks associated with climate change. Howden’s new tool addresses these evolving challenges by transforming complex data into actionable insights, thus enhancing decision-making and climate resilience.
Howden is known for its comprehensive risk management solutions, specialising in areas such as insurance broking, risk advisory, and employee benefits. The company operates on a global scale, helping clients across various industries mitigate risks through tailored strategies.
The Howden Resilience Laboratory provides several key features, including advanced climate risk modelling that identifies residual risks to clients’ financial and operational performance. The platform also supports bespoke scenario planning, enabling users to simulate outcomes from strategic decisions like mergers, market expansions, or decarbonisation efforts. Additionally, the Laboratory offers optimised investment and insurance strategies that take into account changes in hazard, exposure, and vulnerability.
The platform uses industry research and collaborates with data experts and partners like Microsoft’s Planetary Computer to offer cutting-edge solutions. The technology is designed to quantify the financial impacts of resilience investments, such as those involving biodiversity and supply chains, ensuring businesses can make strategic, sustainable decisions.
At the recent Climate Week NYC 2024, Howden and Microsoft demonstrated an automated modelling approach that helps real asset investors assess the impact of climate risks before making investment decisions. This approach also evaluates resilience strategies and their financial implications, taking climate risk assessment to unprecedented levels of accuracy.
The platform adheres to the Physical Climate Risk Assessment Methodology (PCRAM) developed by the Institutional Investors Group on Climate Change (IIGCC). It is the first solution to provide reports on financial metrics such as cash flow impacts, adding a new dimension to climate risk management.
Mahesh Roy, Investor Strategies Programme Director at the IIGCC, praised the platform, saying, “By streamlining the process, the Resilience Laboratory’s application of PCRAM offers the opportunity to broaden its use across sectors, providing insurers and investors with a practical framework to incorporate climate resilience into their decision-making. This consistent approach not only manages risks but also enhances asset value over time, ensuring long-term stability and unlocking opportunities for more resilient investments.”
Howden’s Chief Information Officer, Lyn Grobler, explained, “Asset owners, investors and wider stakeholders face evolving and complex pressures from risks related to climate change. This collaboration with Microsoft allows us to create a world-class innovation hub powered by data, AI and computation to model climate scenarios and assess financial impacts, which will enable strategic and confident investment decisions that protect assets and businesses. Together with Microsoft, we will continue to integrate insights and collaborate with other data partners and researchers to help scale and build the tools and capabilities to de-risk financing decisions and accelerate the transition to a more resilient world.”
Bill Borden, Corporate Vice President, Worldwide Financial Services at Microsoft, added, “At Microsoft, we are dedicated to empowering industries with the technology needed to tackle critical issues like climate change. The Howden Resilience Laboratory is using technology and data platforms to model, understand, and mitigate climate risks in ways that were previously unachievable. Together, we are helping businesses make informed decisions that not only manage risk but drive long-term sustainability and resilience.”
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