The Relevance of Resource and Environment Issues to Pension Actuaries

Resource and Environment (R&E) issues include the inter-related topics of climate change, water scarcity, pollution, loss of biodiversity, and the availability of fossil fuels and other materials. These issues have the potential to significantly change the economic and social landscape in which pension schemes operate. This will, in turn, affect the advice that actuaries are giving today.  There are currently few Resource and Environment resources available to pensions actuaries, particularly to help them explain how these issues are relevant to pension schemes and give associated actuarial advice.

By examining the main implications of resource and environment issues to pension actuaries and pension schemes, this working party will seek to identify the best ways to manage those implications and ensure the provision of appropriate actuarial advice.

Key objectives:

• Summarise the R&E issues of relevance to pension provision and provide links to more in-depth information
• Developing a practical guide to help pensions actuaries reflect the implications of R&E issues in their work
• Suggest practical steps that pension actuaries can take to reflect R&E issues in their work
• Recommend topics for further research and/or tools to be developed to help pension actuaries reflect R&E issues in their work.

Outputs:

• Allowing for Climate Change When Setting Financial Assumptions
• Climate Risk: A Practical Guide for Actuaries working in Defined Contribution Pensions
• A Practical Guide for Pensions Actuaries
• Resource and Environment Issues for Pensions Actuaries: Supplementary Information on Resource and Environment Issues and their Implications for Sponsor Covenant Assessments
• Resource and Environment Issues for Pension Actuaries: Implications for Setting Mortality Assumptions