South Africa. Pension fund boards must take climate change into account
A South African pension lawyer has published a new opinion which finds that the boards of South African pension and provident funds must fully consider climate risk when making investment decisions. Failure to do so exposes trustees to the threat of legal liability for losses incurred by the fund as a result.
The legal opinion specifies that this is true for funds regulated by South Africa’s Pension Funds Act, and for those funds – like the Government Employees Pension Fund (GEPF) – that are not. Pension funds are now being asked to show that their management is adequately addressing the risks to investments posed by climate change – as they are legally obliged to do.
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