Climate Risk

Many large UK pension schemes are still failing to protect their portfolios from financial risks associated with climate change, according to a survey by the Asset Owners Disclosure Project (AODP).

The FTSE Group has launched its first set of benchmark indices that exclude companies operating in the fossil fuels market, following warnings over the financial risk of climate change.

Former US vice-president Al Gore has called on schemes to maximise long-term value by factoring sustainability into investment decisions and evaluating asset managers over a longer timeframe.

Institutional investors with more than $20trn (£12.7bn) in assets are urging global policy makers to create strategies that encourage private sector investment in climate change solutions.