Carolyn Murnaghan

Carolyn’s passion for sustainability sprouted in her early 20s while studying economics and corporate finance at the University of Toronto. A single sentence by a professor sparked a paradigm shift within her: “Our capitalist economic system treats environmental degradation and human exploitation as externalities.”

“I sat there thinking, ‘What are we doing? That is just not how things should be!’”

Intrigued, Carolyn explored neglected elements in economics, delving into topics like triple bottom line accounting and corporate social responsibility.

This awakening led her to pursue a master’s in environmental sustainability at the University of Leeds University in the United Kingdom.

“I applied to the program with absolutely none of the requisite qualifications. However, I made a compelling case that economics was ignoring this whole space of environmental degradation, and I wanted a deeper understanding that I could bring to the corporate world.”

Not only did she get accepted and gain that deeper understanding, her research also led to her writing the UK government’s position paper on pro-environmental behaviour in businesses¹.

After earning her first master’s degree, Carolyn operated her own environmental sustainability business for two and a half years, collaborating with NGOs, universities, and a UK bank on green funding.

“I partnered with NGOs conducting quantitative analysis of potential physical risk impacts. On the transition side, I looked at how municipalities could encourage pro-environmental behaviour change and worked closely with the pilot transition city of Leeds. For the bank, I did the financial modelling for envirotech startups to help them move from seed to mezzanine funding.”

The global financial crisis marked a shift in Carolyn’s career.

“Green investments disappeared, funds began closing, and research opportunities dried up. I needed a job!”

Pausing her professional focus on sustainability, Carolyn entered the UK Financial Services Authority, delving into the complexities of Solvency II regulatory requirements to reshape insurance supervision in Europe. She was then headhunted by Deloitte and spent the next five years implementing Solvency II across Europe.

Alongside her full-time role—and still determined to promote sustainability—Carolyn pursued her master’s in organizational and social psychology at the London School of Economics.

“I realized prompting pro-environmental behaviour change was difficult; we needed to build consensus and rally momentum to encourage action. I can influence you to recycle, but I can't make you do it.”

Her second MSc broadened Carolyn’s understanding of group dynamics and organizational complexities, enhancing her ability to drive pro-environmental behaviour change.

Rapidly advancing in her career, Carolyn then joined HSBC and was appointed as the global framework architect for the organization’s operational risk transformation project.

“We made material changes to governance, three lines of defence roles and responsibilities, risk prioritization, risk management tools, issue scoring, action scoring and other capabilities. The project covered all 16 non-financial risk types across 70 countries and all four lines of business working with stakeholders of all levels globally.

Following Britain’s exit from the single market, she assumed a pivotal role in HSBC’s Brexit negotiations, which were further complicated by its status as a global systemically important bank (G-SIB).

“Over the next two and a half years, I negotiated model permissioning for the commercial and investment banks in all European jurisdictions.”

Even so, Carolyn’s determination to amplify sustainability persisted—and then another defining moment in her career arrived, prompting her and her husband to return to Canada.

“I joined Deloitte Canada to combine my knowledge and experience in risk with my passion for increasing sustainability in the insurance sector.”

In her role at Deloitte, Carolyn leads efforts to align organizations with OSFI’s Guideline B-15. However, her vision extends beyond mere compliance to promote a long-term view. Her team is dedicated to connecting current practices with future ESG standards and sustainability goals, emphasizing the integration of climate factors into core business strategies. She also oversees climate risk assessments, aiding clients in implementing robust risk management strategies.

Although organizations often have a good understanding of their short- and medium-term business plans, they frequently struggle to accurately and comprehensively assess climate risks.

“Conducting a thorough analysis in this area can reveal potential areas of significant impact. By considering insights from other jurisdictions, we assist organizations in developing appropriate responses to these risks.”

“Many perceive climate risk assessment as daunting, as it involves evaluating the impact of physical and transition risks on balance sheets and stakeholders. Our role is to guide organizations in evaluating their current position and then engaging in the exciting process of defining their future goals and desired capabilities, integrating climate concerns into decision-making, and transparently communicating with stakeholders.”

How should organizations handle climate risks? Through planning, preparation, and adaptation. Success will depend on flexibility and resilience being built in—before they are even needed.

“Decisions concerning threats like rising sea levels or acute events must be made in advance. A complex cost-benefit analysis is essential, particularly for infrastructure projects that demand substantial funding. If your objective is to prepare for disasters, it’s crucial to start planning and taking action now.”