Net zero: actuaries take the helm
In the first in a series on net zero for insurers, David Rochester, Hugh Kenyon and Rudi Van Delm liken the work needed to turning a supertanker. To help with the massive manoeuvre, there are big levers actuaries can pull.
In 2019, the UK was the world’s first country to declare a climate emergency, committing to reach net zero by 2050, in line with the Paris Agreement. There was broad political consensus for this.
But during the past few months, there has been notable backsliding from the government. It pushed back the date by which all new vehicles must be fully electric from 2030 to 2035, and plans for the phase-out of gas and oil-powered home boilers have also been thrown far into the future.
The government’s advisers on the UK’s Climate Change Committee have warned of “worryingly slow” progress, saying their confidence has “markedly declined” from just a year ago.
While leaders in the UK have remained committed to meeting net zero by 2050, this will be a formidable challenge. The UK will have little over a decade (in the late 2030s and 2040s) to rewire its entire infrastructure.
All this is set against a backdrop of global warming that is ever more alarming and urgent. September 2023 breached the Paris Agreement’s targeted 1.5°C rise above pre-industrial temperatures for the first time, and 2023 was the warmest year on record. Huge amounts of UK farmland and housing flooded repeatedly during the winter of 2023-24.
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