UK. Bank of England Governor warns of climate change threat to pension funds
Bank of England governor Mark Carney has warned pension schemes are at risk due to climate change unless they cut their investments in fossil fuels.
The outgoing BoE chief made the comments in a pre-recorded BBC Radio 4 interview broadcast today (30 December).
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He warned unless firms woke up to the ‘climate crisis’ certain assets would become worthless.
Mr Carney said: “A question for every company, every financial institution, every asset manager, pension fund or insurer: what’s your plan?”
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He added: “Four to five years ago, only leading institutions had begun to think about these issues and could report on them.
“Now $120tn worth of balance sheets of banks and asset managers are wanting this disclosure [of investments in fossil fuels].
But it’s not moving fast enough.” He told the BBC pension fund analysis had shown the policies of all companies combined were consistent with a warming of 3.7-3.8C – “far above the 1.5 degrees that the people say they want and governments are demanding”.
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