Pension trustees must consider investment climate change risks
Although scheme trustees are not explicitly required by law to consider climate change risk, it is becoming increasingly apparent that climate change issues may materially prejudice investment returns. Trustees should therefore be prepared to manage climate change risk through their investment strategy, strategic asset allocation, investment manager selection process and stewardship activities according to the report, by Pinsent Masons, the law firm behind Out-Law.com, and the University of Leeds.
The report aims to clarify how trustees can, and should, consider climate change as part of their investment strategy in an appropriate and proportionate way, despite the lack of a coordinated approach on how these factors should be taken into account.
Read More: Out Law
