Pension schemes must engage with the shift towards de-carbonisation by investing in environmentally friendly infrastructure according to a leading figure.
Christiana Figueres, executive secretary at the United Nations Framework Convention on Climate Change said the global economy is undergoing a rapid transition that pension schemes need to engage with.
"Institutional investors are the longest term investors yet they are the least engaged and that can and must change," she said.
Figueres said the recent Paris climate change summit signalled a deepening of this transition and that we will see "warnings being put on high carbon investments in the same way we put them on cigarette packets."
She added: "We are decarbonising our economy - we just need to decide on what pace we do this at."
She said institutional investors have a massive opportunity to kick start global economies by investing in vital infrastructure across emerging economies. She said some $90trn (£62.7trn) was expected to be invested in infrastructure in these economies over the next 15 years.
"You play a major role in the stability of the global economy long term and we are at a point where the banks have run out of ammunition and the global economy is paralysed," she said.
"However, history tells us that when the global economy is paralysed like this then investment in infrastructure such as the rebuilding of Europe after World War II can help."
Morningstar Investment Management (MIM) has launched a range of three multi-asset funds that will blend active and passive strategies to offer advisers low-cost solutions.
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
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