Enhancing Our Climate Change Public Policy Statement

Nearly five years since it was last updated, the Institute has revised and enhanced its Public Policy Statement on Climate Change. 

This reflects recent submissions to the Government and industry bodies in this rapidly developing area, along with heightened interest, passion and leadership from actuaries working in this field.

Climate change poses serious risks but also provides opportunities for Australia 

The Institute recognises that the world's climate is warming at the fastest rate in modern history and that greenhouse gas emissions from human activity are the main cause of this warming ^[1] . 

Whilst posing serious risks ^[2] to communities, economies, and to the sectors that actuaries advise, responses to climate change also create opportunities.

For example, an orderly clean energy transition provides opportunities for the economy and community to benefit from increased investment, employment and quality of life.

Dealing with long-term and uncertain risks is our forte

Actuaries have an ability to add value in addressing climate change; in leadership, risk management, influencing and technical climate change roles.

Working with other stakeholders and often in multidisciplinary teams, actuaries are well placed to assist in:

• identifying and understanding the risks and the range of consequences of climate change in the short, medium and long-term, including the degree of confidence in future outcomes;
• developing policy options and strategies to respond to these risks; and
• developing and implementing frameworks and plans to manage risks over time.

There is a need for increased investment in adaptation and resilience

New elements have been added to the Statement, reflecting the need for:

• an increased investment in adaptation and resilience;
• an increased focus on the protection and restoration of nature; and
• a just transition that is fair and equitable for all.

The Statement also recognises the work the Institute is committed to doing in supporting actuaries in this field and being conscious of its own greenhouse gas emissions. 

The Statement will guide regulatory liaison activity

A complete copy of the Statement is available here  and the key Policy Positions are presented below. 

The Actuaries Institute:

Supports the key aim of the Paris Agreement and calls for urgent co-ordinated global actionto limit temperature rises to the maximum practical extent, given the unavoidable impacts, uncertainty of outcomes and the significant risks associated with tipping points.

Advocates for an ambitious, orderly transition to net zero by 2050 to avoid the worst outcomes of climate change, protect water and food security, support biodiversity and manage transition risk.

Advocates for an increased focus on the protection and restoration of nature and the biodiversity it contains, to recognise its value and vital role in limiting emissions and adapting to climate impacts.

Advocates for a just transition that is fair and equitable for all, acknowledging the different vulnerabilities across communities, regions and stakeholders, as well as the need to identify new opportunities for socio-economic development in affected regions

Advocates for timely, co-ordinated and significant investment in adaptation and resilience, given that significant additional warming, extreme weather and rising sea levels are inevitable, exposing Australia to increased risks, impacts and costs.

Advocates for Australia to lead by example and play its part on the world stage, recognising Australia's influence, capabilities, vast access to renewables and exposure to natural perils.

Advocates for the proactive role that actuaries can play, using their long-term, risk, financial and leadership skills to help businesses and society develop ambitious, just, orderly net zero transition plans, manage transition risks and opportunities, drive adaptation and increase resilience.

Actively supports actuaries in understanding and responding to climate risks and opportunities, including where relevant educating and advocating for actuaries to make a difference.

Embed climate change within the Institute's decision-making, policy development and event planning, with a focus on minimising greenhouse gas emissions, where relevant and practical.

This is an exciting development, reflecting the profession's advocacy, influence and credibility.

As respected professionals, actuaries have an opportunity and a responsibility to help drive and navigate an orderly net zero transition, for the good of both business and society.

References 

^{[1] Intergovernmental Panel on Climate Change. (n.d.). AR6 synthesis report: Climate change 2023 - Summary for policymakers headline statements. https://www.ipcc.ch/report/ar6/syr/resources/spm-headline-statements}

^{[2] Intergovernmental Panel on Climate Change. (2022). Summary for policymakers. In Climate change 2022: Impacts, adaptation and vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change. https://www.ipcc.ch/report/ar6/wg2/chapter/summary-for-policymakers}