UK Institute and Faculty of Actuaries (External organisation)

Description

The working party will provide insight and research on current climate reporting practices by large UK large insurance regulated companies regulated by the Prudential Regulatory Authority, and large occupational based pension schemes that are subject to either The Pension Regulator or Department of Levelling Up climate risk reporting requirements . The purpose will be to gauge the quality of climate risk reporting, both in addressing TCFD recommendations and in implementing the GFANZ transition plan guidance. The research will identify both instances of best practice and broader levels of engagement with various aspects of climate risk reporting, including scenario analysis, performance metrics, governance, risk management and strategy aspects.

The scope of the working party will be:
• Evaluate the quality of climate risk reporting practices by pension schemes and insurance companies to both regulators (e.g. PRA, TPA) to their stakeholders
• Overview of current UK and relevant international regulations-guidelines, both industry specific and generic (e.g. International Sustainability Standards Board)
• Survey of best practice internal capabilities in climate risk reporting following key aspects related to:
o Governance
o Fit for purpose
o Link to risk appetite framework
o Use of risk reporting
o Reporting capabilities
• Critique of GFANZ climate risk scenarios and other climate collaborations and related initiatives (such as the Task Force on Nature Related Disclosures)

Period	20 Dec 2022 → 31 Dec 2023
Held at	UK Institute and Faculty of Actuaries, United Kingdom