November 2020

12Nov

Pension funds and corporates could save the world

Big institutional investors such as pension and sovereign wealth funds, as well as corporate clean energy buyers must come on board to drive the investment levels needed to stave off catastrophic global heating, according to a report by the International Renewable Energy Agency (IRENA). The Global Landscape of Renewable Energy Finance 2020 study published yesterday states institutional investors sitting on an estimated $87 trillion of global assets supplied only 2% of investment for renewables in 2017 and 2018. Although...

November 12, 2020
News, Slider, ,
Read more...
03Nov

Australian pension fund settles landmark climate lawsuit

One of Australia’s largest pension funds on Monday agreed to settle a landmark climate risk litigation filed by a 25-year-old member who alleged it was failing to protect his retirement savings against climate change. REST acknowledged in a statement that climate change would lead to catastrophic economic and social consequences and that the phenomenon was a “material, direct and current financial risk” to the superannuation fund. The closely watched case could influence how global funds manage such risks in...

November 3, 2020
News, Slider, , ,
Read more...
02Nov

US pension funds failing in climate change challenge

Fewer than one-in-five pension funds in North America have committed to achieving net zero carbon emissions across their portfolios by 2050 according to a study that underlines the need to accelerate the fight against climate change in the world’s largest pensions market. Read also Australian pension fund settles landmark climate lawsuit Just 17 per cent of North American pensions funds aim to reach net zero by the middle of the century while a further 8 per cent expect to reach...

November 2, 2020
News, Slider, , , ,
Read more...

October 2020

23Oct

How Well-Prepared Are Pension Funds for Climate Risk?

A major report recently released by United States federal regulators warns that climate change is starting to disrupt U.S. financial markets, as the costs of wildfires, floods and droughts penetrate insurance and mortgage markets. The report by the bipartisan Commodity Future Trading Commission (CFTC) lays out how escalating climate risks could threaten pension payouts over the coming decades. Divya Mankikar is an investment manager at CalPERS, the public pension for California’s public employees and the world’s largest pension...

October 23, 2020
News, Slider, ,
Read more...

September 2020

08Sep

Managers Of $40 Trillion Make Plans To Decarbonize The World

The Institutional Investors Group on Climate Change (IIGCC) is a European group of global pension funds and investment managers, totaling over 1,200 members in 16 countries, who control more than $40 trillion in assets (€33 trillion). They have drawn up a plan to cut carbon in their portfolios to net-zero and hope other investors will join them. Read also One of Sweden’s Biggest Investors Starts ESG Pressure Campaign The group’s mission is to mobilize capital for a global low-carbon transition...

September 8, 2020
News, Slider, , ,
Read more...
04Sep

ESG Investing: Theory, Evidence, and Fiduciary Principles

By Max M. Schanzenbach, Robert H. Sitkoff Trustees and other investment fiduciaries of pensions, charities, and personal trusts, and those who advise them, face increasing pressure to rely on ESG factors in the investment management of tens of trillions of dollars of other people’s money. At the same time, however, confusion abounds about the intersection of fiduciary principles and ESG investing. This article cuts through that confusion to provide guidance about when and how ESG investing by trustees and...

September 4, 2020
Articles, Investment, Pension Management, , ,
Read more...

August 2020

28Aug

UK. The Department for Work and Pensions publishes consultation on pension climate risk

The Department for Work and Pensions (DWP) has published a consultation, setting out proposals for larger occupational pension schemes and authorised master trusts to publish their climate risk financial disclosures. The consultation, published 26 August 2020, recommends that trustees of large occupational pension schemes must have effective governance, strategy, risk management and accompanying metric targets, to manage climate risk and opportunities in the market from October 2021. The DWP has recommended that trustees calculate the carbon footprint of pension...

August 28, 2020
News, Slider, , ,
Read more...
27Aug

UK. Taking action on climate risk: improving governance and reporting by occupational pension schemes

This consultation seeks views on policy proposals to require trustees of larger occupational pension schemes and authorised schemes to have effective governance, strategy, risk management and accompanying metrics and targets for the assessment and management of climate risks and opportunities. It also invites responses on proposals to disclose these in line with the recommendations of the international industry-led Task Force on Climate-related Financial Disclosures (TCFD). It is proposed that among the activities required would be calculating the ‘carbon footprint’...

August 27, 2020
News, Slider, , , ,
Read more...

July 2020

29Jul

UK pension scheme NEST tightens climate change policy

The move by the scheme, which invests the retirement savings of 9 million workers, is one of the most ambitious to date and comes as regulatory pressure builds for the industry to better manage climate-related risk. As well as the effects of climate change such as rising sea levels and more extreme weather, companies are at risk of costs associated with regulatory change and litigation linked to the transition to a low-carbon economy. "Just like coronavirus, climate change poses...

July 29, 2020
News, Slider, , ,
Read more...
10Jul

Environmental Concerns and Financial Performance: Evidence from the EU Regulatory Framework

By Ricardo Correia, Carmen Mendoza, Nuria Suárez We analyze the impact of carbon and greenhouse gas emissions on firms’ accounting and market performance. Over a sample of 115 non-financial firms from 9 European countries during the 2008-2016 period, our results suggest that higher volume of both country-level carbon and greenhouse emissions have, on average, a positive and statistically significant impact on firms’ accounting performance. However, no statistical effect is found in terms of stock market performance. The results are...

July 10, 2020
Articles, ESG, Investment, Regulation, , ,
Read more...