21 Planetary Solvency: A Risk Management Framework

SuperJens Heavy Industries
SuperJens Heavy Industries
21 Planetary Solvency: A Risk Management Framework
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This report from the Institute and Faculty of Actuaries and Exeter University proposes a “Planetary Solvency” framework for managing global risks to human prosperity. It argues that current risk assessments severely underestimate the interconnected threats of climate change and biodiversity loss, particularly the risk of cascading tipping points. The report introduces the RESILIENCE principles for realistic risk assessment and offers illustrative outputs demonstrating the urgent need for policy changes. Key recommendations include implementing annual Planetary Solvency assessments, setting limits respecting planetary boundaries, and enhancing policymaker capacity on systemic risk management. The ultimate goal is to guide human activity within safe operating limits for a sustainable future.