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Issue 1 - Climate Change

In this issue, we consider the role of discount rates, financial disclosure and the importance of understanding not just the likely possible outcome, but the worst case scenario when assessing the potential impact of climate change.

In particular, this first issue addresses the role of long-term institutional investors such as pension funds and life insurance companies.

As well as highlighting the role of actuaries in understanding the long-term implications of this policy challenge, we want to present a broad perspective on the issue, and have invited contributions to this bulletin from a range of important voices in the debate. In this issue, we hear from academia, independent advisers to governments, think tanks and the financial services industry on the specific role that financial services can and should play in encouraging adaptation towards a low carbon economy.

Contributors

Matthew Bell is the Chief Executive of the Committee on Climate Change. The Committee is an independent, statutory body established under the Climate Change Act 2008. Its purpose is to advise the UK Government and Devolved Administrations on emissions targets and report to Parliament on progress made in reducing greenhouse gas emissions and preparing for climate change.

Professor Henry Shue is a Senior Research Fellow, Centre for International Studies, Department of Politics and International University of Oxford; and Senior Research Fellow Emeritus, Merton College, Oxford.

Professor Aled Jones is the inaugural Director of the Global Sustainability Institute (GSI) at Anglia Ruskin University. His work in climate finance has been recognised by the State of California and he has received a key to the city of North Little Rock, USA. He is a Co-Investigator for the ESRC Centre for the Understanding of Sustainable Prosperity. He sits on the Resource & Environment Research Sub-committee for the Institute & Faculty of Actuaries. Dr Craig Rye is an economist working at the Centre for the Understanding of Sustainable Prosperity at the University of Surrey. He is currently working on novel empirical analyses of economic instability and in explorative energy-transition models. He has a PhD in Ocean Physics and BSc in Environmental Sciences.

James Orr and Matthew Scott work for the Prudential Regulation Authority at the Bank of England. James is Chief Actuary, General Insurance and provided oversight of the PRA’s report on climate change and insurance. Matthew was principal author of the PRA’s insurance report and leads on environmental risk and green finance, including supporting the Bank’s work co-chairing the G20’s Green Finance Study Group with People’s Bank of China.

Nico Aspinall FIA works as an independent consultant in the investment management and pensions industry, focussing on DC benefits. He is Chair of the Institute and Faculty of Actuaries’ Resource and Environment Board. The Resource and Environment Board is dedicated to making sustainability issues mainstream in actuarial work and works collaboratively with actuaries, financial institutions and regulators to ensure their analyses and advice include sustainability issues.

The Principles for Responsible Investment (PRI) is the world’s leading proponent of responsible investment. It works to understand the investment implications of ESG factors and to support its international network of investor signatories in incorporating these factors into their investment and ownership decisions. The PRI acts in the long-term interests of its signatories, of the financial markets and economies in which they operate and ultimately of the environment and society as a whole.

ShareAction’s vision is of an investment system that truly serves savers and communities, and protects our environment for the long term. It is working towards a system in which long-term thinking is recognised as the best way to guarantee healthy returns. It believes that anyone can play a part in changing the investment system for good.

Faith Ward’s career has been dedicated to integrating and reporting on ESG risks in finance and investment. Faith leads engagement with the fund management industry and is involved in industry wide initiatives to improve standards in responsible investment, corporate engagement and fund governance and reporting. The EAPF, part of the Local Government Pension Scheme (LGPS), is the pension fund of one of the world’s leading environmental organisations. It is responsible for administering the current and future pension benefits of just under 41,000 members. The EAPF remains one of the best funded in the LGPS. 

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Contact Details

For further information on any of our public affairs or policy work please contact us on:

policy@actuaries.org.uk

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Events calendar

  • Spaces available

    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

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    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.

  • Actuarial Innovation in the COVID-19 era

    This event is online. 
    26 April 2021 - 7 May 2021
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    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.

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    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.

  • Europe Town Hall

    28 April 2021

    Spaces available

    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.

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    Sessional Meeting - Free to viewMis-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

  • Finance & Investment Virtual Conference 2021

    Available to watch globally in May.
    10-12 May 2021
    Spaces available

    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

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    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.

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    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.

     

  • CILA 2021

    Available to watch globally in May.
    19-21 May 2021
    Spaces available

    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.

  • Pensions Conference 2021

    Online webinar series
    16-22 June 2021
    Spaces available

    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.