On the go: The Institute and Faculty of Actuaries has published a new alert warning of the risk that actuaries may not be appropriately considering or communicating the impact of climate change, and has committed to releasing new guidance in this area.
The risk alert coincides with the closure of the IFoA’s consultation into proposals to update its regulatory framework on climate change and sustainability issues. Launched in September and closing in December, the consultation presented a range of proposals for incorporating climate change and sustainability issues into the framework.
The consultation attracted 65 respondents from across the IFoA membership, 60 per cent of whom were supportive of incorporating climate change and sustainability into the framework “in some way”, though it also found significant disagreement as to precisely what form this should take.
There was broad opposition (67 per cent and 72 per cent respectively) to two proposals that would have seen additional wording added to the code itself, but there was majority support (75 per cent) for guidance “to ensure member have an appropriate level of relevant knowledge and skills to carry out work in this area, when relevant, and communicate on these issues appropriately,” the IFoA’s response explained.
It added: “We will not therefore introduce any additional mandatory regulatory requirements at this stage.”
The new risk alert forms part of the IFoA’s response to the consultation, and it pledged further guidance to support the Actuaries’ Code requirements.
It also promised to continue work to incorporate climate change and sustainability content across its “career-long-learning” provision, and to engage with the Financial Reporting Council on the UK’s technical actuarial standards “to reflect that we believe there is a role to further technical guidance for actuaries in this area and to explore opportunities for collaboration on joint ethical and technical guidance for IFoA members”.
Furthermore, the IFoA said it would develop additional professionalism and case study materials on climate change sustainability issues “on an annual basis”.
Finally, it said it would revisit further potential mandatory regulations in 12 to 18 months, taking into account its wider climate-related work and increased knowledge among its members.
Neil Buckley, chair of the IFoA regulatory coard, said: “By issuing this new risk alert, we are emphasising to members a risk that actuaries need to evaluate as to whether they are considering appropriately, or communicating clearly, the impact of climate change and sustainability.
“The risk alert is part of a series of commitments by the regulatory board as a result of the recent consultation and seeks to emphasise to members how the current regulatory requirements, such as the Actuaries’ Code, apply in this area.”
