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Sustainable Finance Community Update

Working towards a sustainable future

An IFoA Sustainability Board initiative. Follow us on LinkedIn and Twitter for further updates and
insights, and subscribe to the newsletter here.

TBC

World Economic Forum’s Global Risk Report 2022 is the 17th edition of the report where experts ranked “Climate action failure” as the risk
with potentially the most severe impact on the Earth over the next decade. The report considers a multitude of other risks and how some
of them have changed since the pandemic. Ending on an optimistic note, it highlights the speed at which governance structures can be put
in place to overcome challenges the earth faces, such as those employed during the pandemic. Earth pictured from space
by NASA on Unsplash.

21st January 2022

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In the spotlight
The Actuary Magazine - Sustainability Features Editor

Are you a qualified member of the IFoA with a personal interest in sustainability? Do you enjoy reading and
writing, have an interest in researching and developing new and topical content, and enjoy talking to thought
leaders?

The Actuary magazine, the leading publication for the actuarial profession, is seeking an enthusiastic member
to join the editorial team as a Sustainability Features Editor.

Find out more here (IFoA).

In the news

Typhoon exposes biodiversity haven Palawan’s vulnerability — and resilience

After Super Typhoon Rai hit Palawan on 17th December 2021, it turned Puerto Princesa Subterranean River
National Park’s (PPSRNP) once thriving forest from green to brown.The full impact of the storm has not yet
been assessed at PPSRNP, where preliminary surveys have been conducted, more than 2,200 trees were
damaged on the park’s fringes and sightings of birds were down by 90%.Rai also dismantled numerous park
facilities and villagers’ homes, displacing more than 3,500 families a week before Christmas.

“It’s heartbreaking to see the devastation that the typhoon caused, not only to the forest, but to the wildlife
as well,” park biologist Nevong Puna told Mongabay. Though biodiversity expert Neil Aldrin Mallari said it’s
possible some animals fled to more sheltered areas before the storm struck.“For those who were not able to
retreat, because they’re not that mobile, like frogs, they might have perished.”

Park superintendent Elizabeth Maclang shared that their park hosts globally significant habitat for biodiversity
conservation, and added that what they’d lose, the world would lose, so she urged developed countries to
partake in raising their long-sought climate fund.

Read the article here (Mongabay).

Climate change 'steroid' contributed to $130 bln in insured losses last year-Aon
Shane

Read the article here (Reuters).

BlackRock CEO Larry Fink advocates use of TCFD climate disclosures

Om

Read the article here (JDSUPRA).

European Commission leads the way to develop pathways for transitioning towards sustainable economy
Shreya

Read the article here (Forbes).

Can Anyone Satisfy Amazon’s Craving for Electric Vans?

Katherine

Read the article here (NY Times).

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Tune in
Mental health in insurance: Where are we as an industry and how can we improve?

Friday 4 February 2022 12:00 - 13:00

The IFoA Mental Health working party look back over their week of blogs and podcasts considering all aspects
of the relationship between mental health and life insurance. The expert panel spans adviser, underwriter
and actuarial experience and they explore triggers for purchasing insurance relating to mental health, the
various routes to insurance and how these may be more suited to different people depending on their
conditions and preferences, the products and processes involved in purchasing these as well as what claims
and support are available to policyholders and how to access them.

The working party considers examples of best practice in the industry currently as well as what we can do to
keep improving products, practices and processes in this area. The event is chaired by John Brazier, an
experienced B2B journalist and editor and features on the panel - Kathryn Knowles (Specialist insurance
adviser), Lisa Balboa (Business Development Actuary, Hannover Re UK) and Fraser Ballantine (Underwriting
Quality and Risk Manager, Zurich UK).

Register the webinar here (IFoA)

WWAR
How Inequality Leads to Industrial Feudalism
Rohan

The following article is a useful summary:

Institute for New Economic Thinking (ineteconomics.org)

Download the full paper here (Institute for New Economic Thinking).

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Opinion
Renewable Energy Shouldn’t be Blamed for Spiking Energy Prices — It's the Solution

The article discusses the spike in electricity, natural gas and oil prices which are at their highest in seven years
with China, Brazil and United States experiencing higher than normal rates however, Europe being at the
centre of the crisis with natural gas prices increasing 400%. The spike is driven by a supply side disruption
caused by the pandemic lowering investments in fossil fuels and maintenance and repair work slowing down.
On the demand side, the surge in 2021 as compared to lower demand in 2020 vastly outpaced the supply.

Whilst renewable energy received some flak for the price spike, it is the lack of investment and capacity for
renewable energy which stands highlighted. Over the years since 2010, cost of solar energy have fallen by
85% and those of both onshore and offshore wind by 50%. Ramping up renewable production also ensures
stable generation as well as lack of dependence on other nations. As per International Energy Agency (IEA)
with the necessary investments in renewable energy generation, advanced economies will see their energy
costs to be lower in 2030 and 2050 than today. However, this transition would also need to address weather
variation, storage, transmission, efficiency and accessibility.

Read the piece here (World Resource Institute).

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we can take as finance professionals to implement positive change.
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