Why Did the Actuary Cross the Road? To Avoid Climate Catastrophes!

With that light-hearted joke, we embark on a thought-provoking five-part series that will leave you fascinated and perhaps a little concerned about the security of your pension funds, investments, and insurance premiums. This podcast is a must-listen for anyone interested in finance, climate change, and risk management.

My esteemed guest is Sandy Trust a distinguished actuary in the UK who sits on the council of The Institute and Faculty of Actuaries !! The Actuarial Profession . Sandy leads the research paper collaborations with Earth System scientists on climate change and sustainability topics, bringing a wealth of knowledge and expertise to our discussion.

Here are some of the highlights we covered

The Vital Role of Actuaries

-Actuaries are the unsung heroes who help companies navigate risks related to longevity, investment returns, inflation, and natural disasters.

-They ensure pension schemes can meet their long-term obligations by preparing for both likely and unexpected events.

Climate Change and Risk Distribution

-Climate change is reshaping the risk landscape, making extreme weather events like heavy rainfall and flooding more frequent.

-Risk and financial modelling need constant updating to predict these changes and their financial impacts accurately.

2016 Climate Change Risk Assessment

-A significant assessment in 2016 highlighted the severe impacts of climate change on global economies, particularly in agriculture.

-Surprisingly, there were no follow-up reports, raising concerns about ongoing risk management efforts.

The Need for Proactive Risk Management

-Governments and organizations must prioritize climate change in their risk frameworks.

-A systematic approach to risk assessment, considering worst-case scenarios, is crucial for informed decision-making.

Discrepancies in Risk Assessments

-Discussions with leading scientists reveal inconsistencies in financial institutions' risk assessments.

-There’s a need for more accurate models to understand the true economic impacts of climate change.

?? Why You Should Tune In:

• Curiosity Sparked: Ever wondered how climate change affects your pension? This episode breaks it down!
• Expert Insights: Gain knowledge from top risk management and climate science experts.
• Actionable Ideas: Learn how proactive risk management can safeguard our future.

??Want to Delve Deeper?

Here are some of the specific research reports (with links) that Sandy refers to:

2022 - Tipping points with Sir David King (CCAG) – climate change is a risk mgt problem, tipping points change everything

2023 - Emperor’s New Scenarios with Tim Lenton (Exeter) – climate change scenario analysis is understating risk, we need to work backwards from ruin

2024 - Climate Scorpion – the sting is in the tail with Tim Lenton (Exeter) – warming is accelerating, and the climate may be much more sensitive than we think to GHGs

Listen here to Why Did the Actuary Cross the Road? To Avoid Climate Catastrophes!

You can also go directly to Spotify and Apple and download the entire series.

The 5Cs Podcast, book and communities are about shining a light on a better path. ?Think of it as a global village of business people giving Planet Earth a hand up. You can find Charlene Norman here on LinkedIn and here. For more thoughts from the 5Cs Podcast, subscribe on Substack.

Comments