UTAM wholeheartedly lends its support to “Time to Act: Facing the Risks of a Changing Climate,” a public statement released by the Canadian Institute of Actuaries (CIA) on September 24. The statement calls on governments, business leaders and investors to take immediate action towards meeting the Paris Agreement target of limiting increases in global average temperature to well below 2°C above pre-industrial levels.

To help manage the financial impacts associated with climate risks, Canada’s actuaries call on:

  1. The federal government to oversee the development of national data collection and disclosure related to the financial impacts of climate-related events such as floods,
    windstorms and wildfires.
  2. All levels of government to require all entities to implement financial disclosure of climate-related risks and opportunities under the Task Force on Climate-related
    Financial Disclosures (TCFD) by 2021 and for corporate entities to adopt the TCFD framework voluntarily as soon as possible.
  3. Investors and business leaders to include environmental, social and governance (ESG) factors in their decision-making.

Actuaries are risk management experts who use data modelling and statistical methods to measure and manage the financial impacts of uncertain events and scenarios. “Quantifying and disclosing the financial impacts of climate change are important ways to help limit the increase in global temperatures in line with the Paris Agreement and to help Canadians adapt to a changing climate,” says the CIA. “Now more than ever, we see the urgency for increased action on data collection, climate-related financial reporting, and best practices for climate-sensitive investing.”

Daren Smith, UTAM’s President and CIO, is an actuary and a CIA member. “Canada’s actuaries have a unique perspective on climate risks and impacts, and their insights can meaningfully contribute to the evaluation of proposed climate change solutions,” he says. “UTAM echoes the CIA’s call for improved data collection and disclosure to support these efforts.”

Read the full statement.