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Taskforce on climate-related Financial Disclosures (TCFD)

Background of the TCFD

The Financial Stability Board’s Taskforce on Climate Related Financial Disclosures (TCFD), Chaired by Michael Bloomberg and heralded by Mark Carney, was established in 2016 to provide the financial services sector with a consistent and reliable means of assessing, pricing, and managing climate- related risks.  These recommendations enable investors to make better informed decisions and lenders, insurers, and underwriters to evaluate their risk over the short, medium and long-term. 

Why is the IFoA getting involved? 

Actuaries’ expertise allows them to identify and manage long-term risk.  Actuaries can use these skills to play a vital role in driving the TCFD’s recommendations by conducting scenarios analyses that identify risk exposure and the potential effects of various mitigation measures.  Without understanding the potential implications of climate- risk from these analyses, companies could face liability, physical and reputational risks.  In addition, if a company does not take stock of its exposure to climate-risk now, the costs of transitioning to a low carbon environment in the future are likely to increase, placing a company at a competitive disadvantage.

Previous Work

The IFoA has produced a number of pieces calling the financial industry to take account of climate risk and recognising the recommendations of the Task Force as a vehicle for doing so.  Our previous work includes:

Breakfast Briefing with Russell Picot and Louise Pryor

26 February 2018

View the breakfast briefing presentation where Russell Picot, Special Advisor to the Task Force and Louise Pryor, Chair of the IFoA’s Resource and Environment Board, discuss the recommendations and ways for actuaries and non-actuaries to collaborate for implementing the recommendations 

Webinar with Russell Picot and Nico Aspinall

22 May 2017

Watch our webinar with Russell Picot and Nico Aspinall, former Chair of the IFoA’s Resource and Environment Board, to learn more about the work of the TCFD and how actuaries can play an essential role in creating systemic change.

Risk Alert and Pensions Guide

12 May 2017

Read the IFoA’s Risk Alert to all members warning all members to ensure they understand and clearly communicate the extent to which they have taken account of climate-related risks in any relevant decisions, calculations, or advice.

To support actuaries implementing this, the IFoA also produced a practical guide on resource and environment issues that are relevant for pension schemes and pensions actuaries.

Previous Consultation Responses

Read our previous consultation responses:

22.01.18 IFoA response to the European Commission- Public consultation on institutional investors and asset managers' duties regarding sustainability

22.09.17 IFoA response to EU Commission EU High Level Expert Group on Sustainable Finance

10.02.17 IFoA response to Task Force on Climate-related Financial Disclosures

29.04.16 IFoA response to FSB Task Force on climate disclosure consultation

24.03.16 IFoA response to EU Consultation on long-term and sustainable investment