As London Climate Action Week begins, members of the Sustainability Early Carreers Board reflect on the work actuaries have been doing in taking action on climate change and climate risk
London Climate Action Week (LCAW) has become a cornerstone of the global climate calendar. Now in its eighth edition, the 2026 programme comes at a time of growing geopolitical and economic uncertainty. Its theme, ‘Cooperation in a fragmented world’, highlights the challenge of sustaining collective progress as global coordination comes under strain.
The two sub-themes are particularly relevant to the actuarial profession: ‘building, investing in and innovating the clean economy’ and ‘understanding climate risk and building resilience’. Both point directly to areas where actuarial expertise is critical. Yet actuaries face growing challenges because of climate change.
This blog argues that actuaries have a crucial role to play in understanding climate risk and supporting the transition to a low-carbon economy. It also explores how the IFoA is contributing to wider interdisciplinary efforts to shape effective climate policy.
The actuarial profession is built on modelling uncertainty using historical data and established relationships. Climate change disrupts this foundation by introducing structural shifts and greater volatility, making future risks harder to assess.
Michael Anderson highlights these challenges for life insurance actuaries, noting that many of the systems they model are increasingly under strain. Anderson points to IFoA President Paul Sweeting’s presidential address. In this address he observed that climate-related risks are characterised by limited historical precedent, incomplete data and a greater reliance on professional judgement when making assumptions.
These difficulties affect all areas of actuarial work. While general insurance and investment actuaries have increasingly drawn on scientific tools such as catastrophe models and climate scenarios, a gap remains between scientific insight and actuarial application.
Despite these challenges, positive developments are emerging.
The actuarial profession is already responding to the challenges of climate change.
As Sandy Trust argues in his influential blog, the IFoA’s Planetary Solvency initiative reframes climate change as a systemic risk that could exceed the capacity of insurance and financial systems to absorb it. This contests traditional assumptions about insurability and encourages actuaries to think beyond conventional risk models.
This thinking is increasingly reflected in actuarial practice. Actuaries are playing an important role in the development of climate scenarios and the assessment of physical and transition risks. They are also designing products that support the net zero transition and integrating climate considerations into investment decisions.
These activities align closely with LCAW’s focus on building and financing the clean economy. By linking risk assessment with financial decision-making, actuaries can help turn climate ambition into practical, investable solutions.
Actuarial expertise is increasingly shaping climate policy and financial discussions. Recent IFoA research has been cited in major climate risk reports for global finance ministers, reflecting the profession’s growing influence in international policy debates.
This impact is inherently interdisciplinary. Working alongside scientists, economists, policymakers and financial practitioners, actuaries help translate climate science into practical tools for risk assessment and decision-making. They also contribute to the development of climate scenarios, regulatory frameworks and approaches that better reflect long-term risks.
The IFoA has played an important role in facilitating this collaboration and integrating actuarial perspectives into wider climate strategies.
LCAW 2026 highlights both the urgency and complexity of climate action in a fragmented world. For actuaries, this presents both a challenge and an opportunity.
The profession must continue to evolve by developing new tools, embracing interdisciplinary approaches and deepening its engagement with climate science and policy. In doing so, actuaries can play a vital role in supporting a sustainable and resilient economy.
The hope is that LCAW not only reinforces the value of collaboration across sectors and disciplines but also inspires action. In an increasingly uncertain world, the ability to understand, quantify and manage risk has never been more important.
