Howden and Microsoft Work Together to Boost Sustainability
International insurance group Howden is steadfast in its commitment to sustainability, working tirelessly to generate positive outcomes for both its operations and clientele.
Keen on propelling its sustainability journey forward, Howden introduces the Howden Resilience Laboratory – a pioneering platform set to revolutionise the way clients navigate and mitigate climate-related risks.
Lyn Grobler, CIO at Howden, said: “Asset owners, investors and wider stakeholders face evolving and complex pressures from risks related to climate change.”
It's worth noting that Howden isn't new to spearheading innovation. Just last year, the company debuted an insurance innovation hub aimed at nurturing and expanding the insurtech start-up ecosystem.
Introducing the Howden Resilience Laboratory
Utilising Microsoft’s cloud technology, the Howden Resilience Laboratory emerges as a beacon of innovative, data-centric solutions tailored to the climatic challenges faced by clients.
Constructed on the foundations of Microsoft Azure, Microsoft 365 and Dynamics 365, the laboratory equips businesses with tools for modelling climate scenarios and evaluating financial repercussions.
Lyn added: "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.”
By analysing vast data sets, inclusive of environmental, societal and economic elements, the platform translates intricate data into tangible insights.
Howden and Microsoft believe that this will empower investors, asset managers and stakeholders with a deeper understanding and capacity to address climate hazards.
The Howden Resilience Laboratory: How it works
Focusing on advanced climate risk modelling and strategic planning, the platform provides businesses with the apparatus to adapt and forge more resilient futures.
It also fine-tunes insurance and investment approaches, aiding users in adjusting to evolving exposures and susceptibilities.
Bill Borden, Corporate Vice President, Worldwide Financial Services at Microsoft, said: “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.”
The laboratory's foundation lies in the Physical Climate Risk Assessment Methodology (PCRAM), crafted by the Institutional Investors Group on Climate Change (IIGCC), marking a first in its capacity to link financial metrics directly with climate risk, thereby offering an advanced and strategic framework for climate risk appraisal.
Spotlight on Climate Week NYC 2024
At Climate Week NYC, Howden and Microsoft are set to unveil a climate risk modelling solution borne of the Resilience Laboratory, offering investors pre-investment clarity on the physical climate threats to assets with Howden.
Also making its mark at Climate Week in New York is our sister title Sustainability Magazine with Sustainability LIVE Climate Week NYC.
To explore the full agenda, click here.
The three pillars of Howden's sustainability strategy
Howden's sustainability endeavours stand on three pillars:
- Changing the insurance narrative
- Being a responsible business
- Giving back
David Howden, Howden's Founder and CEO, said in the company's 2023 sustainability report: “2023 felt like a turning point in terms of recognising the role our industry has to play in building a more sustainable future. At COP28, insurance and de-risking – topics that had historically lived in the fringes had become firmly embedded in the narrative.
“It’s hugely encouraging that others can see the value that we know insurance can bring — it is now incumbent upon us to continue to channel our collective efforts as a company, and industry, to drive, with urgency and at scale, the use of this powerful tool to drive the change needed to create a fairer, more resilient future for all.”
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