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The 2019 IPCC Special Report on Global warming of 1.5 Degrees.
Science has been addressing climate change for many decades.
The place to start is the work of the Intergovernmental Panel for Climate Change (IPCC). This is the UN body that assesses the science related to climate change. Through its assessments, the IPCC determines the state of knowledge on climate change. It identifies where there is agreement in the scientific community on topics related to climate change, and where further research is needed. The IPCC does not conduct its own research. IPCC reports are neutral, policy-relevant but not policy- prescriptive. Created in 1988, the IPCC has 195 member countries.
Although the Paris Agreement wording is “keeping the global temperature rise this century to well below 2 degrees celsius above pre-industrial levels, and to pursue efforts to limit the temperature increase even further to 1.5 degrees celsius”, growing concern about the damage inflicted by a 2 degree rise led to the IPCC publishing a Special Report on Global warming of 1.5 Degrees in 2019.
Physical risks from climate change arise from a number of factors and relate to specific weather events (such as heatwaves, floods, wildfires and storms) and longer-term shifts in the climate (such as changes in precipitation, extreme weather variability, sea level rise and rising mean temperatures).
Transition risks arise from the process of adjustment towards the low carbon economy, such as climate-related developments in policy/regulation, the emergence of disruptive technology and business models, shifting societal preferences and evolving evidence and legal interpretations.
Liability risks arise from parties who have suffered loss or damage from the crystallisation of physical or transition risks seeking to recover those losses from those they hold responsible.
IPCC reports are also one place to learn more about important climate change terminology from the Paris Agreement. ‘Mitigation’ is (human) intervention to reduce emissions or enhance the sinks of greenhouse gases, eg renewable energy or afforestation. ‘Adaptation’ is the process of adjustment (including human intervention) to actual or expected climate and its effects, eg flood defences. These activities, whatever their motivation, impact future climate change risks. ‘Loss and damage’ is the term given to the residual unavoidable harm caused by climate change, linked to liability risk.
Energy lies at the heart of many climate issues. The International Energy Agency (IEA) was created in 1974 to help co-ordinate a collective response to major disruptions in the supply of oil. While oil security remains a key aspect of its work, the IEA has evolved since its foundation. Founded in 2009, the International Renewable Energy Agency (IRENA) is an intergovernmental organisation that supports countries in their transition to a sustainable energy future. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy.
While this guide focuses on finance and risk, and does not seek to cover developments across the non-financial economy, Deep decarbonization examines green hydrogen in the context of net zero greenhouse gas emissions and the future of the EU Emissions Trading Scheme.
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Wicked Problems, Clumsy Solutions and Leading Change
Dr Catherine Donnelly will present the basics of the structures for pooling longevity risks and summarise recent research results in this area in addition to outlinging future research around this topic. This is work under a research programme funded by the IFoA's Actuarial Research Centre, called 'Minimizing longevity and investment risk while optimising future pension plans'.
Climate-Related Risk - This free to view webinar on Climate-Related Risk is the first in a series focusing on some of the ‘Hotspots’ identified in the JFAR Risk Perspective bringing the Risk Perspective to life with practical illustrations and insights from subject experts from the IFoA and other Regulators
Recent decades have seen institutions, such as employers and financial services, give people more choice and flexibility, but these freedoms have come with more responsibilities. Individuals are now responsible for managing more of their own financial risks, from ensuring they put enough money into their pension to securing affordable protection to be financially resilient.
Join us for this brand new IFoA webinar weries comprising of a fortnight of webinars, panel sessions and a hackathon, that showcase the range of ways in which the actuarial profession has added value, in the public interest, to the understanding and management of the current and future pandemics through insight and learning.
This event is now temporarily closed on Monday 26 April, but the session will be repeated on Tuesday 27 April, 09.00-10.30. Please click here to register your place.
Actuaries have a lot to offer biodiversity management over the next decade as the world develops more depth to its response to this global challenge. This sessional offers an opportunity to learn about this emergent risk, to contribute to our thinking as a profession and help us develop the next steps forward.
IFoA Immediate Past President John Taylor would like to invite you to the Institute and Faculty of Actuaries’ (IFoA) virtual Europe Town Hall, hosted by John Taylor with IFoA Council Members Alan Rae, Jennifer Hartley, Maribel Vasquez Flores and IFoA Chief Executive, Stephen Mann.
Mis-estimation risk is a key element of demographic risk, and past work has focused on mis-estimation risk on a run-off basis. However, this does not meet the requirements of regulatory regimes like Solvency II, which demands that capital requirements are set through the prism of a finite horizon like one year. This paper presents a value-at-risk approach to mis-estimation risk suitable for Solvency II work
This year's Finance and Investment Virtual Conference takes on the timely theme of ‘resilience’, something we have all learnt a lot more about in the last year! Our diverse range of talks will explore the theme of resilience in a variety of ways including in building robust investment portfolios, in the incorporation of ESG factors, in govern
This talk will explore the potential benefits that wearable tech can bring to health & protection insurers and their customers. The traditional approach of integrating wearables into insurance has largely focused on measuring steps and using rewards-based incentive programs to encourage more activity.
Join us for this talk with Professor Sir Adrian Smith as part of the 'Dr Patrick Poon Presidential Speaker Series'. Professor Smith joined The Alan Turing Institute as Institute Director and Chief Executive in September 2018. In November 2020, he became President of the Royal Society, in addition to his leadership of the Turing. He is also a member of the government's AI Council, which helps boost AI growth in the UK and promote its adoption and ethical use in businesses and organisations across the country. He received a knighthood in the 2011 New Year Honours list.
We continue to live in a world of global uncertainty. Survival depends on our ability to simultaneously navigate through the diverse root-causes, ranging from: the consequences of Climate Change; on-going financial consequences of the COVID pandemic; or self-imposed changes in regulatory requirements and accounting standards.
Welcome to the programme for our 2nd Virtual Pensions Conference. This year's conference features 11 webinars offering members and non-members the opportunity to get up to date content from leading experts in the pension industry. There will also be opportunity to ask questions and contribute to the discussion.