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Climate-related scenario analysis for Canadian financial institutions
Climate-related financial risks have emerged as some of the most important topics among risk professionals. While plenty of material has been produced to provide essential learning about the sources and definitions of climate-related risk, a practical climate-risk exercise focused on the Canadian financial system was notably absent. The 2021 Bank of Canada (BoC)/Office of the Superintendent of Financial Institutions (OSFI) climate scenario analysis pilot filled that void and took a big step forward in assessing systemic risk for Canadian financial institutions.
Will climate justice or climate finance dominate COP 27 in Sharm el-Sheikh, Egypt?
While climate-related physical risks for this decade and the next remain largely driven by past emissions, actuaries may need to consider their impact on decisions by investors and policymakers seeking to manage transition risks through adaptation or mitigation initiatives.
Canadian Institute of Actuaries supports scaling up climate scenario analysis
The Canadian Institute of Actuaries (CIA) is proud to give its support to the final report of the Office of the Superintendent of Financial Institutions (OSFI) and the Bank of Canada’s climate scenario analysis pilot, released in January 2022. The report, the first of its kind in Canada, assesses and discloses climate transition risk associated with six major financial institutions and contributes to the understanding of the potential exposure of the financial sector to this risk.
Deeper dive into the Actuaries Climate Index data sources
The ACI provides objective measures of specific and aggregate changes in climate extremes and sea level across Canada and the US and is based on an analysis of seasonal data from neutral, scientific sources for six index components collected since 1961.
Should we expect COP 26 to deliver a Paris Agreement 2.0? Can lessons from COVID-19 increase political will?
As global citizens and professionals, actuaries need to give some priority to a climate-sensitive, sustainable future and help enhance collective financial and societal well-being. COP 26 signatories drive political decisions, but the details at implementation level is what will matter for actuaries, so they should be prepared to participate in the formulation of clear, consistent, and financially sound proposals for the management of climate financial risks.
Actuaries Climate Index down again in latest five-year average
The winter 2020-21 data release of the Actuaries Climate Index (ACI), which provides objective measures of specific and aggregate changes in climate extremes and sea level across Canada and the U.S., shows a second consecutive small decline in the index’s five-year moving average and now sits at 1.19 points above the ACI reference period.
How to make the most of the Actuaries Climate Index
Since 2016, the CIA and its partners have released data from the North American Actuaries Climate Index (ACI) every quarter. The most recent release continues the tradition. But what can you do with this data? What does it mean? We caught up with members of the CIA’s Climate Change and Sustainability Committee (CCSC) to learn more about the ACI and help find out how you can make the most of it.
Actuarial focus on mitigating climate risks and adapting to change
As the Actuaries Climate Index and other climate-related measurements continue to tick upwards, the question is what do we do with these data? Are Canada and the provinces putting enough effort towards adapting our infrastructure to the potential consequences of climate change? How can Canadian actuaries get more involved in climate-related risk management and apply their expertise to the challenge?
Actuaries Climate Index reaches new heights for latest season and five-year average
The five-year moving average of the Actuaries Climate Index (actuariesclimateindex.org) reached a new high for the tenth consecutive quarter, according to the latest data release that includes summer 2020. The five-year moving average now sits at 1.23 points above the reference period of 1961-1990.
How actuaries are adapting their work to climate change risks
A 2020 survey of CIA members shows that just under one third of respondents account for climate change risks in their actuarial work, a proportion similar to that indicated in a 2019 survey. These results point to a continued need in the profession for additional information and guidance on the subject.