WTW

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Carbon per FTE (full-time-equivalent employee) — the diagnostic measure for people-leveraged businesses where headcount, not capital, drives delivery. Captures the office, energy and travel footprint per person.

No narrative on renewables strategy in the firm's most recent reports.

No narrative on durable removals approach in the firm's most recent reports.

• Doubling allocation to climate solutions by 2030 via EU Taxonomy- and IIGCC-aligned frameworks

  WTW has committed to doubling its investments in climate solutions across delegated portfolios by 2030. Exposure to climate solutions is assessed using EU Taxonomy and IIGCC methodologies and tracked as a core metric in the climate dashboard. Portfolio alignment is measured across multiple lenses including Science Based Targets Initiative (SBTi), Transition Pathway Initiative, and Climate Action 100+, combined with the IIGCC Net Zero Investment Framework to ensure capital is being mobilised toward the transition as well as decarbonised away from high-emission assets.

• Climate Transition Value at Risk (CTVaR) methodology for transition-risk-aware portfolio construction

  WTW uses its proprietary Climate Transition Value at Risk (CTVaR) methodology — developed by a 20+ member Climate Transition Analytics team within the 90-strong Climate Resilience Hub — to quantify climate transition risk in portfolio construction. CTVaR integrates forward-looking company assessments with traditional risk-return models to assess all pertinent climate transition impacts on asset prices, going beyond simple carbon emissions proxies. The methodology underpins the Climate Transition Index (CTI) co-developed with STOXX, which had $1B committed in funds since its 2021 launch.

• Carbon Journey Plan: 50% portfolio GHG reduction by 2030, net zero by 2050

  WTW's Carbon Journey Plan framework targets at least 50% reduction in GHG footprint by 2030 and net zero by 2050 across all discretionary delegated portfolios, using 2019 as baseline year aligned to NZAMI/NZAOA. Progress is tracked via a balanced scorecard covering financed emissions (emissions/$ invested), % of portfolio Paris aligned, amount and % in climate solutions, physical risk exposure, transition risk exposure, and engagement quality. Carbon journey triggers are set at +/-30% of the planned trajectory from end-2022 to prompt reviews when the portfolio strays materially from path. Asset class level modelling of climate targets is underway.

• Stewardship and engagement with portfolio companies and managers via EOS at Federated Hermes

  WTW delegates engagement and voting on public equity and credit holdings to EOS at Federated Hermes, which conducted 450+ engagements through GEFF portfolios in 2021 and represents $1.6tn of assets under advice. WTW's own manager research team conducted 150 engagements with 100+ managers on sustainability, climate and stewardship during 2021. EOS leads or co-leads engagement on 25+ CA100+ focus companies targeting the world's 167 largest GHG emitters, helping design the CA100+ net-zero benchmark (released March 2021) which sets clear engagement priorities to drive corporate alignment with Paris Agreement goals.