Our Climate Risk and Sustainability course, open to all members, helps actuaries understand climate risks in the same way as other major risks. We asked recent graduates Sian, Samuel and Caryl to give us their verdict.
Governments, businesses, and regulators are increasingly recognising that climate change poses a serious risk to health and mortality, infrastructure and financial markets. The risks are global and systemic, carry many uncertainties, and reach into all aspects of society.
2022 alone saw floods in Pakistan that displaced eight million citizens and caused $40bn in damages. Hurricane Ian made thousands of Florida residents homeless and inflicted about $50bn in insured damages. And searing temperatures in Europe killed at least 15,000 people.
It was a year that also saw the fifth consecutive failed rainy season in the Horn of Africa, now entering its sixth. The UN has called it one of the longest and most severe droughts on record. The UK Parliament claims it has caused 36.4 million people to suffer from hunger.
Actuaries play a central role in shaping future financial systems and leading positive change for the management of climate risks to protect the public interest. We must consider, and communicate clearly, the impact of climate change and sustainability within our work.
Whether you’ve just starting out on your actuarial journey, looking to upskill, or wanting to dedicate your career to climate and sustainability, this course is for you. It will help you understand and consider climate risks in the same way as any other major risk.
This eight-course week is open to all our members, whatever their background or experience and wherever they are in the world. Topics include transitional impacts, financial regulation, economics and sustainability, strategy and risk management, modelling and communication.
We spoke to three recent graduates of the course, Sian Eltman, Samuel Jackman and Caryl Embleton-Thirsk, to tell us what they thought.
Sian Eltman: I am an actuary working for a regulator in an offshore jurisdiction. My role includes prudential supervision of insurance companies and setting insurance policy.
Samuel Jackman: I’m a pensions and employee benefits actuary working as an external consultant in Israel.
Caryl Embleton-Thirsk: I’m an investment consultant with a specialism in environmental, social and governance (ESG). I advise DB pension schemes on their investment strategy.
SE: I saw it as a good opportunity to upskill in a key risk area that will affect all of our regulated entities in the near future.
SJ: I wanted to broaden my actuarial horizons.
CET: For the last couple of years my role has increasingly focused on ESG, ensuring our clients are up to speed on the latest in ESG and climate regulations. I had previously undertaken some further learning on ESG but wanted to deepen my knowledge on climate, in particular.
SE: Just how serious and imminent an issue combatting climate change is, and how we, as actuaries, can play a key role in encouraging and assisting our clients, members, policyholders, regulated entities, as well as a myriad of other related stakeholders, in a smooth transition to a net-zero world.
SJ: On climate change we are all going to have to pay twice: for the costs of the transition to net zero and for the damage caused by greenhouse gas (GHG) emissions. The longer we delay action, the greater the cost will be, but the delay continues. This is a problem whose solution is still under development. Actuaries, keep thinking!
Though climate change is the key risk, there is a general problem that we are not using the world’s resources in a sustainable fashion. We need to re-engineer our economies to be sustainable. However, this is going to be nothing short of a revolution. For example, new clothes and new gadgets will need to be made out of old clothes and old gadgets.
CET: Climate and sustainability issues are incredibly complex and there is much to do! However, we can and must do our bit. The course builds the foundational knowledge actuaries need to help deliver the real-world changes necessary to tackle the climate crisis through the work we do and the clients we advise.
SE: ESG is a key theme for us, of which climate and sustainability is a material part. This course improved my capacity for setting policy and best practice, and determining an appropriate framework for the supervision of our regulated entities as they start their journeys towards net zero.
SJ: The course has helped me put together the information I had already received from The Actuary magazine and from wider reading and develop a broad view of the topic. It’s given me the option to develop a new competence for myself as a sustainability actuary.
CET: While I already had some knowledge of the impacts of climate change, the course helped to clarify how climate can be integrated into actuarial work and how to put that into practice. For example, a big part of my role is supporting UK pension scheme clients in meeting TCFD requirements – the climate-scenario models part of the course was invaluable to me here, and I will continue to refer back to the notes as I work on climate-scenario analysis presentations to clients.
SE: The content was genuinely interesting, with a good mix of technical and practical aspects. There was the option to learn from videos and webinars, as well as from reports and papers.
Working on the practical content for the seminars with other actuaries from across the globe was a particular highlight. It opened my eyes to people living in areas that are already experiencing the consequences of climate change and how they are working to combat the issue.
SJ: Good study text with useful links and videos, allowing a good mix of room for exploration with formal learning. Helpful web-based sessions allowed us to talk out the issues with other actuaries.
CET: I really enjoyed the opportunity to learn and hear different perspectives from other actuaries of different ages from all over the world and who work in varying fields outside of my own. I also enjoyed not having to cram for an exam with this course; I am very glad those days are long gone for me! It meant the learning could be more fluid, allowing you to spend more time on areas of the course that may be more relevant to you or that you have more interest in.
SE: I fitted the course in before work and at lunchtimes. Some modules were more onerous and completing them within the allocated time was a challenge. I was lucky my employer provided study leave to attend the workshops.
SJ: There was a high level of flexibility, enabling me to fit the requirements within my time. I got a week ahead and then took a break when needed.
CET: My company was generous in allowing me to take some study days to help keep on top of the material. I also blocked out time, either on a couple of evenings or during a weekend each week. The fact that material for new modules was being released each week incentivised me to be disciplined to ensure I could get through the material before the next module was released.
SE: Sign up! The course is unique in that it is as eye-opening from a personal perspective as from a professional perspective. Before the course, I thought I knew about climate change, but I had no idea of the true scale of the issue. I immediately changed my daily actions following the course, and shared my knowledge with family, friends and colleagues in the hope that they will also amend their actions.
SJ: If the subject interests you or if you feel that for your career path ignorance is not an option, this course is a good choice. It will push you to develop your thinking and knowledge of the area and give you the tools, background, interest and network to continue that journey after the course.
CET: Get signed up! We must all do our bit in solving the climate crisis and this course is an ideal way to learn about how you can get started.
Samuel is now a facilitator on the course. We asked him what that entails and why he got involved.
SJ: Facilitators join the web-based sessions to help the session along if necessary and check that everyone gets a chance to talk. Each facilitator is responsible for seven to ten participants. There's a short pre-session meeting for the facilitators and you need to give a short feedback to your group at the end.
I got involved so I could give back to the profession, hear different viewpoints and keep my new-found knowledge up to date.
The course is open to IFoA members – find out more about the course at Climate Risk and Sustainability Course. If you’re interested in becoming an actuary and want to see if the profession could be for you, take a look at ‘What is an actuary’.
