The volatility caused by climate change is a tremendous challenge for the insurance and reinsurance sector but is also "once-in-a-generation opportunity" that should have companies investing, says Aon CEO Greg Case. Instead of being defensive or retreating, companies "should be getting bigger as an industry to help them sort these risks," Case says.

Recent water crises in Jackson, Miss., and Puerto Rico "are just tips of the iceberg," and many communities are vulnerable to similar issues as climate change intensifies and drinking water systems continue to rely on outdated maps and old infrastructure, according to Craig Fugate, a former administrator of the Federal Emergency Management Agency. "It's just a matter of time before they fail or we have another disaster," Fugate said at a recent House Homeland Security Committee hearing.

In 2020, Congress ordered the Defense Department to stop using aqueous film-forming foam, which contains high levels of PFAS, in firefighter training applications, but the Pentagon is still using it to fight fires as it searches for an acceptable PFAS-free alternative. The Federal Aviation Administration and 24 states have also taken steps to reduce the use of AFFF in firefighting.

The Securities and Exchange Commission has been leading the way on rules for climate risk reporting in the US, but it's about to get another player in its corner -- the Environmental Protection Agency. The EPA will use $5 million in funding from the Inflation Reduction Act to help standardize corporate climate commitments and ensure progress toward those goals is transparent. Experts agree the SEC and EPA's work will likely be complementary.

The Environmental Protection Agency is working on a proposed rule to regulate two types of PFAS, but until that takes effect, states are stepping up with bans, water quality standards and other actions. More than 200 bills relating to PFAS have been introduced in 31 states, according to Safer States, and National Director Sarah Doll says, "I absolutely anticipate it's going to be all over 2023 policy sessions."

Focusing on the use of low-carbon steel, concrete, asphalt and flat glass in federally funded construction projects is necessary for the government to reduce its carbon emissions, according to recommendations from the Biden administration's Buy Clean task force. The recommendations also include highlighting Buy Clean practices through pilot projects nationwide.