The IFoA recognises that the climate is changing globally at an unprecedented rate as a result of human activity. This change presents ecological, social, economic and financial risks. The potential impacts of climate change are global and systemic. As well as highly disruptive physical changes there are significant implications for the entire financial system.
We are a profession specialising in risk management, and climate change is one of the greatest risks facing our world today. Mitigating this risk is urgent. Future outcomes are uncertain, but the best value insurance premium that society can pay is to reduce our emissions today in order to avoid the irreversible consequences of unmitigated climate change tomorrow.
The IFoA supports the aim of the Paris Agreement to limit climate change to an increase of substantially under 2C from pre-industrial temperatures and recognises that in order for there to be a reasonable probability of achieving this aim there must be a transition to a global economy that has no net greenhouse gas emissions (“net zero”) by 2050.
The IFoA will:
The IFoA is a signatory of the Green Finance Education Charter and a supporter of the FSB’s Task Force on Climate-Related Financial Disclosures, the UN’s Principles for Responsible Investment, and the UN’s Principles for Sustainable Insurance. We will continue to work with these and other organisations to better align the finance system with a net zero ambition. We are confident that all actuaries will play their part in leading change in the financial system to serve the public interest in the management of climate-related risk.