Board members’ investment-capital decisions are broadly influenced by what they hear and understand of the forecasts and assessments of climate risk models. The models widely used today are “linear” risk models, thus predicting smooth changes in the future. However, in the “non-linear” real world, a host of potentially highly disruptive “tipping points” could knock the best of today’s investments way off course. This presents an even greater challenge for NEDs who already face increasingly challenging governance aspects. Please join us for this thought-provoking hybrid event, presenting different perspectives from key stakeholders involved in this challenge, to explore and collaboratively discuss: What actually is the problem with today’s climate risk models? How do NEDs & trustees need to handle climate related expert information to provide effective oversight of executives’ risk and investment decisions What could be done differently to achieve fit-for-purpose outcomes? This event is a collaboration between the IFoA’s NED Member Interest Group and Financial Systems Thinking Innovation Centre, aiming to promote further insights for both the NED community and Finstic, potentially leading to a better approach to the issues discussed. Chair: Sarah Bates Speakers: Sandy Trust, Nicola Ranger, Mark Bayley CBE, Bruce Beck, Mirko Cardinale and David Lamb
Climate risk: Is our board decision-making based on not-fit-for-purpose models?