2024 SOA ImpACT Conference - Session 6E: Climate Risk Track Session E: Integrating Climate Risks into Investment Management 10.29.24 Recording

With emerging regulations and evolving investor requirements, financial institutions such as insurers are increasingly expected to identify, measure, assess and manage climate risks. These expectations apply not only to an insurer's liabilities and products, but also to its assets - the investment portfolio. Actuaries have a vital role to play in this process, whether it be for modeling asset cash flows in certain climate scenarios, assessing risks posed by climate change or optimizing portfolios to be resilient to climate risks. Speakers representing investment and risk management teams to share how they are integrating climate risks into their investment management practices. We will discuss methods to measure and assess climate risks in the investment portfolio, for both transition risks and physical risks. Speakers will also touch on how climate risks can be integrated into the bottom-up investment process. Lastly, we discuss climate-action-oriented programs to decarbonize investment portfolios and their challenges. At the end of this session, participants will be able to: - Understand methods and challenges to measuring exposure to climate risks in their portfolio - Understand methods and challenges in integrating climate risks into the investment process - Understand methods and challenges in implementing decarbonization programs such as Net Zero.