The Joint Forum on Actuarial Regulation (JFAR) has this week published an extensive report on the science of climate change and how actuaries can help mitigate risks.
The first-of-its-kind report is a unique collaboration between JFAR members with an interest in actuarial work, including the Institute and Faculty of Actuaries (IFoA), Financial Reporting Council, Financial Conduct Authority, the Pensions Regulator and the Prudential Regulation Authority.
It is designed to address gaps in actuaries’ knowledge of the science behind climate change, giving them confidence to increase their contributions on the topic.
It includes analysis of global temperature changes and the impact of mass human migration, rising sea levels and its impact on the UK and Europe, and implications for food security and human mortality.
The interconnectedness of biodiversity and climate change are also covered, as are the 'tipping point' thresholds beyond which a system reorganises abruptly and irreversibly, such as with permafrost thaw.
The report will be an important reference tool for professionals wanting to increase their knowledge of climate change and the science behind it, familiarising themselves with concepts like carbon budgets and net-zero emissions.
Neil Buckley, Regulation Board chair at the IFoA, said: “The IFoA has a broad range of guidance and resources to support members in considering climate-related risk as part of their work, and as an organisation, we have committed to be net zero by 2030.
“As a member of JFAR, we believe this report represents another valuable resource to help actuaries better understand and communicate the ecological, social and economic impact of climate change, and the world-changing, systemic risks it presents.”
Meanwhile, the Climate Change Committee (CCC) has warned today that the UK's strategy for decarbonising the economy will not deliver net-zero emissions by 2050 if progress continues on its current trajectory,
In a landmark 600-page assessment, the government advisors highlight “major failures” in net-zero delivery programmes, with a thorough review finding “scant evidence” of progress against headline climate goals.
Although there are some bright spots, particularly around the deployment of renewable energy and adoption of electric cars, in most areas, “the likelihood of under-delivery is high”, which the CCC describes as a “high-wire approach”.
It found a “shocking” gap in policy for insulating homes, while agriculture and land use have the weakest policies in its assessment, despite also being vital to delivering other goals on food security and biodiversity.
This is the first appraisal of the government’s Net Zero Strategy, published last year, finding that over a third of emission reduction plans cannot be relied on to deliver the cuts needed to meet the sixth carbon budget in the mid-2030s.
CCC chairman, Lord Deben, said: “The UK is a champion in setting new climate goals, now we must be world-beaters in delivering them. In the midst of a cost-of living crisis, the country is crying out to end its dependence on expensive fossil fuels.
“I welcome the government’s restated commitment to net zero, but holes must be plugged in its strategy urgently. The window to deliver real progress is short. We are eagle-eyed for the promised action.”
Image credit: iStock
Author: Chris Seekings