Sessional meeting by the Biodiversity Working Party
Since 1970, the Earth’s wildlife populations have fallen by almost 70% – a result of deforestation, excessive human consumption, and life-choking pollution. Attention to biodiversity and nature-related risks (‘biodiversity risks’) is growing from policymakers and regulators, with efforts and comments from ECB, NGFS, and TNFD as just three recent examples. The commitments from the 2022 Montreal-Kunming Global Biodiversity Framework are almost certain to be embedded into regulatory frameworks in the near future. Responding to biodiversity risks calls on our actuarial skills, techniques, and professional judgement. Indeed, the long-term, uncertain, and intangible nature of these risks are all deeply actuarial. The IFoA recently agreed a new biodiversity and nature-related risk policy to reflect its commitment to support the profession and its members with their understanding of, and engagement with, these risks. The trajectory and impact of biodiversity loss are uncertain. The consequences, including financial ones, are projected to be large, although the timings and exact outcomes are unknown. Climate risks accelerated onto the actuarial agenda within four years of the Paris Agreement and two years from the recommendations of the TCFD. We expect similar or shorter timeframes for biodiversity risks. Thus, biodiversity and nature-related risks is a critical topic for actuaries to understand and embed in their work. This sessional meeting is part of a broader program of efforts and is extremely timely and extremely relevant to all actuaries. The event will: give an introduction to biodiversity and nature-related risks explore the final Taskforce for Nature-related Disclosures recommendations: using and creating nature-related metrics and risk analysis including the similarities and differences between climate-related and nature-related risks and their disclosures.