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Welcome to the
Scorpion's Tail Club
Mobilizing the financial sector to de-risk the transition to climate solvency & sustainable profits
Image by Michael Shannon

A forum for influential leaders from the banking, insurance, pension, and investment sectors to discuss and act on the ramifications of climate change-related events at the extreme margins of probability (tail risks).

By-Invite-Only

Curated

Discreet

How does the Scorpion's Tail Club work?
1
CONNECT
the dots

Ongoing discreet interactions between people of influence from the financial sectors to discuss the ramifications of increasingly common climate change-related tail-risk events.

2
UNITE
the voices

Collaboratively prepare policy frameworks, regulatory strategies, policy proposals and legal guidelines to define and proactively shape climate-solvent economic frameworks.

3
SHAPE
the framework

Leverage Club members' influence and credibility to expedite recommendation presentation to and implementation by appropriate policy makers and regulators.

4
TRANSITION
to sustainable profits

Growth and profitability within environmentally sustainable limitations for generations to come.

Why do we need the Scorpion's Tail Club?

The Scorpion's Tail Club - the Club - is the outcome of the 2024 "Climate Scorpion" report prepared by the Institute and Faculty of Actuaries and University of Exeter. The Club, while unaffiliated with either of these organizations, aims to make the recommendations in the Climate Scorpion report actionable in order to ultimately create the conditions needed for a transition from a corporate "profits at all costs" mindset and legal mandate, to a mindset and regulatory environment supportive of "sustainable profits" - called climate solvency in the Climate Scorpion report.

Our mission is to catalyze a change in economic activity that transitions from "profits at all costs", to "sustainable profits" enabled by the internalizing of externalities to re-align economic activity so that it takes place within global environmental limits. 

 

Our strategy is to provide a forum for influential financial sector leaders to explore options and prepare for the inevitable economic, political and social system shift that will accompany an increasingly risk-laden environmental and business landscape. Operating under Chatham House rules, this kind of framework is essential since today there is no discreet place for leading figures to discuss what/if/how their respective industries can prepare for the transition that’s already underway to an increasingly risk-prone natural and business environment.

 

The Scorpion's Tail Club offers a safe place for members to discuss and evaluate system-changing issues - from exit-strategies to move out of industries significantly contributing to climate change, to how to internalize externalities to truly reflect the costs of doing businesses, and more - all without risking their personal and business credibility.

 

We need this because a climate changed future will present massive risks to all - including to the viability of these financial sectors as well. The Club aims to be the catalyst needed to remediate the worst consequences of climate change from happening at all, and Club members who participate stand to benefit by both contributing to de-risking that future for their industries as well as those they serve, while also de-risking the transition journey towards creating that new economic ethos needed for a sustainable future. 

 

The Story Behind the Name

The Scorpion's Tail Club was chosen as the name for this venture both in homage to the valuable insights presented in the Climate Scorpion report, and because it so aptly describes the situation facing the 4 financial sector segments being "targeted". These sectors provide the resources needed for the economy to operate, but in doing so, that same economy is undermining the very foundations on which it and all humanity depend - the environment and climate. As with the scorpion in the parable about the scorpion and the frog, it is in the scorpion's nature to do what will harm itself; it can't help itself. We hope - even if it runs counter to the nature of these financial segments - to achieve a different outcome.

The scorpion's tail references tail risk in the probability curve as reflected below from the "Climate Scorpion" document and which the authors describe as follows:

"Tail risk refers to the risk of unlikely events occurring, typically in the ‘tails’ of a probability distribution. Such events can be rare but can have significant impacts on financial markets, investments or other systems. Actuaries often pay attention to tail risk as it involves the potential for large losses, which are of particular interest for risk management."

ADD 2 sentences explaining climate solvency

 

We believe that the actuaries in these segments have an even more important role to play, serving as the early-warning system to the management in their respective companies about the impending catastrophe facing their own companies and segments as well as the recipients of their capital and insurance coverage under the the current corporate regulatory frameworks and financial institutional frameworks that fail to see how, like the scorpion, they are charging blindly also to their own death.

Tail Risk.jpg
Who should join the Scorpion's Tail Club?
Image by Craig  Whitehead

INSURANCE

The insurance sector is directly impacted by climate change, with increasing claims from extreme weather events and natural disasters. These "1-in-a-100-year events" are becoming more frequent, threatening the industry's profitability and sustainability. Membership in the Scorpion’s Tail Club allows senior insurance leaders to exchange insights on emerging risks and innovative solutions. By working together, they can influence policy and regulatory changes that better reflect the evolving risk landscape, ensuring the industry can continue to provide essential coverage and protection in a changing climate.

  • Chief Underwriting Officer (CUO)

    • The CUO manages the underwriting process, including risk assessment and pricing. Engaging with the Scorpion’s Tail Club would help them stay informed about emerging climate risks and develop innovative underwriting solutions.

  • Chief Executive Officer (CEO)

    • The CEO leads the overall strategy and direction of the insurance company. Joining the club would enable them to drive the company’s adaptation to climate change, ensuring long-term profitability and market leadership.

  • Chief Sustainability Officer (CSO)

    • In the insurance sector, the CSO leads initiatives to incorporate sustainability into business practices. Participation in the club would help them stay informed about the latest climate risk trends and regulatory changes, ensuring that the company remains proactive and resilient in the face of increasing climate-related claims.

Insurance
4 reasons INSURANCE professionals should join:
1
Better prepare for the impacts of climate change

The insurance sector is directly affected by climate-related events, with increasing claims from natural disasters and extreme weather. These events pose immediate financial risks to insurers, but being a member of the Club gives you leading-edge insights & strategies can help you better prepare.

2
Leverage your risk management expertise

Insurers are fundamentally in the business of risk assessment and management. Joining the club would align with your core expertise and enhance your ability to anticipate and mitigate emerging climate risks.

3
Influence & adapt to changing regulatory requirements

The insurance industry is heavily regulated, and there is growing pressure to incorporate climate risks into their regulatory frameworks. Being part of the club would enable you to influence and stay ahead of regulatory changes.

4
Integrate sustainability for greater resiliency

Insurers are increasingly integrating sustainability into their business models. Participation in the club provides an opportunity to lead and shape industry standards and practices in this area.

BANKS

Banks play a pivotal role in the global economy, and their stability is crucial for overall financial health. Climate change poses significant risks to loan portfolios and investment assets, potentially leading to increased defaults and financial instability. By joining the Scorpion’s Tail Club, senior banking executives can collaborate on developing strategies to mitigate these risks, ensuring their institutions remain resilient. Additionally, proactive engagement in climate risk management enhances reputation and aligns with the growing emphasis on sustainable finance, attracting environmentally conscious clients and investors.

  • Chief Risk Officer (CRO)

    • The CRO is responsible for identifying, assessing, and mitigating risks to the bank. Joining the Scorpion’s Tail Club would provide valuable insights and strategies to manage climate-related risks, ensuring the bank’s resilience and stability.

  • Chief Financial Officer (CFO)

    • The CFO oversees the financial operations and strategy of the bank. By participating in the club, they can better understand the financial impacts of climate change and incorporate sustainability into the bank’s financial planning and reporting.

  • Chief Sustainability Officer (CSO)

    • The CSO is responsible for developing and implementing the bank’s sustainability strategy. Joining the Scorpion’s Tail Club would provide them with access to best practices and collaborative opportunities to integrate climate risk management into the bank’s operations and strategy.

Image by Jason Dent
Banks
4 reasons BANK professionals should join:
1
Optimize risk management

Banks are highly exposed to climate-related financial risks through their loan portfolios and investments. Being a member in the Club will help you better understand and mitigate these risks.

2
Better anticipate regulatory pressures

Banks face increasing regulatory pressures to incorporate climate risk assessments into their financial stability frameworks. As a Club member you have the opportunity to influence & foresee regulatory requirements.

3
Build your reputation to match demand

There is growing demand from stakeholders, including customers and investors, for banks to demonstrate leadership in sustainable finance and climate risk management. As a Club member you can better position yourself for where the market is going.

4
Manage financial impact

Climate-related events can significantly impact the value of assets and the creditworthiness of borrowers, making it critical for banks to engage in proactive risk management strategies. Club members shaping the environment within which business takes place are best positioned to control financial outcomes.

Image by Adam Śmigielski

Investors

Investors are increasingly aware of the financial implications of climate change and the need for sustainable investment practices. Extreme climate events can disrupt markets and devalue assets, posing significant threats to investment returns. The Scorpion’s Tail Club provides senior investors with a platform to stay ahead of these challenges by collaborating on best practices and influencing regulatory frameworks. Participation in the club signals a commitment to responsible investing, helping to attract capital from stakeholders who prioritize sustainability and long-term value creation.

  • Portfolio Manager

    • A Portfolio Manager is responsible for making investment decisions and managing investment portfolios. By joining the club, they can stay ahead of climate-related risks and opportunities, ensuring robust and sustainable portfolio performance.

  • Chief Investment Strategist

    • The Chief Investment Strategist develops and communicates the firm’s investment strategy. Engagement with the Scorpion’s Tail Club would enhance their ability to incorporate climate risk considerations into strategic planning, aligning investment strategies with long-term sustainability goals.

  • Chief Sustainability Officer (CSO)

    • The CSO at an investment firm oversees the integration of sustainability into investment decisions and practices. Engaging with the Scorpion’s Tail Club would allow them to network with peers, share insights, and influence the development of regulatory frameworks that promote sustainable investing, enhancing the firm’s reputation and investment performance.

Investors
4 reasons INVESTMENT professionals should join:
1
Manage portfolio risk

Investors need to manage the risk of climate-related events that can affect the value of their investments. Engaging in the club can help you stay ahead of these risks and capitalize on sustainable investment opportunities.

2
Align ESG-related considerations

There is a growing trend toward integrating Environmental, Social, and Governance (ESG) factors into investment decisions, and participating in the club aligns with this trend. Club members will be amongst the first to see latest ESG trends so you can align with them ahead of the curve.

3
Influence & Advocacy

Investors have the potential to influence corporate behavior and policy changes through their investment choices and advocacy. As a Club member you are also an integral member of a valuable platform for collaboration and impact.

4
Synchronize with market demand

Similar to banks, investors face increasing demand from stakeholders for responsible and sustainable investing practices. Being part of the Scorpion’s Tail Club will provide the early indicators you need to enhance your reputation and align your strategies with market expectations.

PENSIONS

Pension funds are responsible for managing long-term investments to secure the retirement futures of millions. Climate change introduces systemic risks that can undermine the value of these investments, threatening the financial security of beneficiaries. Senior pension fund managers who join the Scorpion’s Tail Club can engage in forward-thinking discussions on integrating climate risk into investment strategies. By doing so, they not only protect and enhance portfolio performance but also fulfill fiduciary duties by ensuring that investments contribute to a sustainable and resilient future.

  • Chief Investment Officer (CIO)

    • The CIO is responsible for managing the pension fund’s investment portfolio. By joining the club, they can gain access to cutting-edge discussions on integrating climate risk into investment strategies, protecting and enhancing portfolio performance.

  • Head of ESG (Environmental, Social, and Governance)

    • The Head of ESG oversees the implementation of sustainable investment practices within the pension fund. Participation in the Scorpion’s Tail Club would provide valuable insights into emerging ESG trends and regulatory developments, helping to align the fund’s investments with sustainability goals.

  • Chief Sustainability Officer (CSO)

    • The CSO in a pension fund is tasked with ensuring that the fund’s investments are sustainable and aligned with long-term environmental goals. By joining the Scorpion’s Tail Club, they can collaborate on innovative investment strategies that account for climate risks, safeguarding the fund’s performance and beneficiaries’ interests.

Image by PiggyBank
Pensions
4 reasons PENSION professionals should join:
1
Optimize long-term strategy & focus 

Pension funds typically have a long-term investment horizon and may not feel the immediate impacts of climate-related events as acutely as other sectors, such as insurance. While Club members may prioritize different time horizons, long term strategies need to reflect the continuum of short-term developments initiated and/or observed by other Club members that will shape the more distant future. 

2
Maintain investment approach despite system fluctuations

Pension funds often adopt a more conservative investment strategy focused on stable returns and risk aversion. Club members engaging in forward-looking discussions on climate risk have the insights needed to make long-term decisions that can help them manage risk to maintain stable returns.

3
Facilitate regulatory compliance even as regulations change

Pension funds are often bound by strict regulatory and fiduciary duties, which might limit their flexibility to participate in initiatives that require significant changes to traditional investment practices. Club members will be amongst the first to see how the regulatory environment responds to climate change, giving valuable lead-time to prepare accordingly.

4
Lower perceived immediate risk

While climate change poses systemic risks, the immediate financial impact on pension funds may be perceived as lower compared to sectors like insurance or banking, which deal with more direct and short-term risks.

Our Partners

Create excel for ecosystem - 4 sectors, regulators, partners; events schedule on members' only page

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