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Environmental Risk Reporting

The Environmental Risk Reporting working party will build on the work of the **‘Risk Reporting’ working party and the ‘incentives facing UK firms to adopt early risk reporting provisions of the Revised Corporate Code.

Environmental risk reporting is an increasingly important topic both for external reporting to shareholders (via disclosure of Environmental, Social and Governance information) as well as for regulatory purposes (e.g. the production of integrated and/or sustainability reports). The actuarial profession has a unique insight into this topic and it is important to get more research published; particularly in relation to the increasing role of narrative, sustainability and climate change issues. There are also UK-specific issues related to environmental risk reporting and the need for better explanation of risk tolerance and risk resilience information under the Corporate Code. The Financial Reporting Council has recently issued requirements for risk reporting in the Revised Corporate Code issued in September 2014. The Task Force on Climate-Related Financial Disclosures, and the Climate Disclosure Standards Board issued guidance on these issues, while the Prudential Regulatory Authority has issued regulatory guidance and recommendations concerning the impact of climate change on the UK insurance industry.

The working party was set up to develop and refine further thought leadership on this subject area promoted by the IFoA, first with the Risk Reporting working paper published in BAJ Volume 19(3) and subsequently a joint working party paper concerning the impact of new Revised Corporate Code requirements for risk reporting, published in BAJ Volume 21(2). The working party was established in the light of ongoing concerns about the impact of climate change on various aspects of actuarial work, ranging from pension fund valuation reports to general insurance pricing. The working party is undertaking further research concerning the impact of these developments on environmental risk-related practices in reporting by a range of insurance companies and pension funds.


The main outcomes from the working party will be a report that:

  • summarises the current and future guidelines, protocols, standards and rules in relation to the impact of climate change and environmental risk,
  • summarises the risk reporting of listed insurance firms and pensions schemes and, based on their disclosures, the risk management processes that they have adopted,
  • provides a view of differences in practice by size of firm and by type of company,
  • provides a view and examples of best practice (and potentially poor practice).

The paper will be disseminated through a number of channels within the actuarial profession and with other external interested parties such as the FRC, listed companies and in conjunction with other professional groups.


**You can read all about the work of the 'Risk Reporting' working party here.

Chair: Paul Klumpes
Membership: 5
Established: 2017

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If you want more information about this research working party please contact the Communities Team.

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