IFoA Announces Commitment on Biodiversity Risk  

The UK’s Institute of Faculty of Actuaries (IFoA) has committed to support the development of policy frameworks and methods for managing biodiversity risk in the financial services sector. In a policy statement, IFoA said it recognised the significant social, economic, and financial risks posed by biodiversity and nature loss, with both critical to climate change’s net zero emissions ambitions through its carbon capture and sequestration. It has committed to using the actuarial skill set and influence to help equip the wider global financial services markets to fully incorporate biodiversity risk, support actuaries in understanding biodiversity risk, and advocate for better, consistent and robust disclosure about biodiversity risk across the financial services sector. Nick Spencer, Former Chair of the IFoA Sustainability Board and author of the biodiversity policy statement, said: “The financial services sector needs to be ready for the changes coming our way. Companies and financial institutions will be required to monitor, assess and disclose the impact of their operations, supply chains and portfolios on biodiversity. The TNFD will publish its risk management and disclosure framework in November. The UK’s Financial Conduct Authority says it will consult in the third quarter of this year on proposals to make [Taskforce on Nature-related Financial Disclosures] reporting mandatory. In the longer term, if requirement to disclose fails to change business practices sufficiently, we believe further regulation or other direct action may be needed.” 

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