ACTUARIAL SCIENCE & SUSTAINABILITY
Emerging Risks: Actuarial Science, Climate & Pandemics
What is the Relationship Between Sustainability and Actuarial Science?Â
Actuarial Science enhances sustainability by including social and environmental factors in the mathematics, statistics, and modeling used to understand, predict, and solve complex business problems.
Actuarial science is a discipline that applies calculus, probability and statistics, financial and actuarial mathematics, economics, finance, risk management, and related fields to define, analyze, and solve complex business, social, and sustainability challenges. Actuarial skills enable professionals to serve as long-term risk managers, assessing the financial impacts and risks associated with economic, environmental, and social sustainability.
According to Actuaries Digital, actuarial science supports sustainability efforts by:
- Developing insurance products that incentivize the management and mitigation of risks related to weather, climate, and environmental change
- Accounting for environmental and social factors in both short- and long-term economic growth
- Providing a quantitative basis for adopting a long-term perspective on sustainability and sustainable development
Institute and Faculty of Actuaries on “Sustainability, Climate Change and the Actuarial Profession”
How Actuarial Science Powers Sustainability
Sustainable actuarial science plays an important role in ensuring that the needs of future generations are considered in the calculation and management of risk.
This unique and evolving role has led to the establishment of dedicated bodies such as the Climate and Environmental Sustainability Research Committee within the Society of Actuaries and the Sustainability Board within the Institute and Faculty of Actuaries. These committees acknowledge the critical contribution actuaries make to sustainable planning and risk management.
Their work includes:
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- Developing models that support more informed and sustainable decision-making
- Conducting analyses aligned with the United Nations Sustainable Development Goals (SDGs)
- Applying the triple bottom line to quantify and integrate sustainability and ESG factors
- Advancing strategies for the actuarial profession to meet sustainability and ESG benchmarks
ADVANCE YOUR KNOWLEDGE OF ACTUARIAL SCIENCE AND SUSTAINABILITY
Learn what sustainability risk management is all about and its importance
Learn the important things to know in this field
Learn how sustainability fits into your courses
Learn how sustainability relates to your career