The FRC is proposing to introduce a new requirement to ensure actuarial practitioners have regard to all material risk, including the consideration of Climate Change and ESG related risks, which they might reasonably be expected to know about at the time of carrying out their work.

Feedback carried out by the FRC has shown that whilst actuaries are well-versed in considering more established areas of risk, non-traditional risks such as climate change and other emerging risks are less well-considered.

Actuarial work continues to evolve to reflect new practice areas, emerging risks, new modelling techniques and new ways of working.

Mark Babington, the FRC’s executive director of regulatory standards, said: “Actuaries have a key role to play in considering risks and modelling of future events so that users of actuarial information can make informed decisions about material risks.

“As the importance of climate change risks continues to grow it is critical that actuaries consider these risks in the course of their work. The proposed amendments to TAS 100 are designed to ensure actuarial work remains fit for purpose within the rapidly changing environment in which actuaries operate.”

The consultation closes on 7 September 2022.