Stretching Analysis: is your firm’s approach to climate scenario analysis in line with the proposed UK regulations? More guidance may be issued soon in relation to nature-related risks
by Nick Spencer
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Nick Spencer is a s a senior consultant and sustainability risk specialist in the London offices of Milliman, LLP. He is a past Chair of the Institute and Faculty of Actuaries Sustainability Board and a member of its Biodiversity Working Party. | ||
On the 30th April, the UK’s Prudential Regulation Authority (PRA) launched ‘CP10/25’ 1, its consultation paper on managing climate-related risks which will update the supervisory statement (SS3/19). The new draft supervisory statement (SS) now runs to 40 pages, replacing a far more modest eleven pages in SS3/19 reflecting the evolving landscape since 2019. As an extensive consolidation of supervisory thinking, it provides everyone with a potential climate risk management benchmark for their current practices and efforts. Actuaries will be particularly interested in the expectations it sets for climate scenario analysis
Disclaimer:
This article represents the opinion of the author, and not necessarily the opinion of the AAE.
This article was published in The European Actuary No. 42 – June 2025
