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.
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:
Webinar with the Institute of Environmental Management and Analysis (IEMA)
25 April 2019
Watch the joint IFoA and IEMA webinar, ‘Task Force on climate related financial disclosures (TCFD) – introduction and perspectives for our professions’. The webinar is an opportunity to hear first-hand from:
- Steve Waygood, and industry leader and member of the TCFD
- Louise Pryor, Chair of the IFoA’s Resource and Environment Board, and
- Paul Pritchard, Senior Associate at Iken and IEMA member
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
31.01.19 IFoA response to FCA discussion paper on climate change and green finance
15.01.19 IFoA response to PRA consultation on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change
22.01.18 IFoA response to FRC initial consultation on the future direction of the UK Stewardship Code
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
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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.