State of OECD Pension Funds’ Climate Transition: Insights and recommendations from the Net Zero Finance Tracker

By Frederick Fabian, Claris Parenti, Maddy Taylor & Valerio Micale Unlike other institutional investors, which often focus on short-term performance, pension providers have a fiduciary duty to address long-term systemic issues and act in their beneficiaries’ best interests. In many jurisdictions, this obligation includes setting credible climate targets, implementing internal changes to strategy, governance, and process, and actively supporting the decarbonization of the real economy. Pension funds’ role in financing the climate transition is drawing sharper focus as the limits of...