Over three quarters (80%) of actuaries have seen their involvement in climate and sustainability work increase in recent years, a study from the Institute and Faculty of Actuaries (IFoA) has found.
The latest thematic review, part of the actuarial monitoring scheme (AMS), aims to support both actuaries and those who rely upon actuarial advice.
“This report provides a valuable overview of how actuaries are managing the high-profile risk of climate change and sustainability,” said Sam Younger, lay chair of the IFoA regulatory board.
“To support actuaries working in this rapidly changing landscape, the IFoA regulatory board is examining how existing guidance can evolve.
“We will continue to engage with IFoA members and volunteers to amplify the voice of the profession and encourage ongoing research and though leadership with global actuarial associations and other agencies.”
ESG Accord: Where, when and how to discuss sustainability and values with clients
Actuaries contribute to climate-related activities such as stress and scenario testing, sustainability frameworks and physical and transition risk modelling.
Participants in the review reported difficulty communicating risks and opportunities, highlighting that climate and sustainability work is often driven by regulatory imperatives. They also noted that budget constraints can impact the scope of work.
Alan Marshall, IFoA review actuary, added: “Climate and sustainability are defining issues of our time, and the skills of actuaries are making a difference in how we understand and manage associated risks across a range of domains.
“It’s important that IFoA members are supported to continue work in influencing and leading activity in this area, and this review highlights key aspects where this can be enhanced.”
