European pension funds consider financial risks of climate change
Bild: Pixabay
Mercer research reveals that 17% of European pensions schemes are considering financial impact of climate change. This is a three-fold increase from those surveyed in 2017. Regulatory nudges are encouraging investors to consider the physical and policy risks posed by climate change.
Mercers 2018 European Asset Allocation Report reveals that more European pension funds are considering the investment risks posed by climate change. Seventeen percent of the 912 participants in Mercers 2018 survey stated that they now consider the investment risks posed by climate change, up from 5% in Mercers 2017 survey and 4% in 2016. This more than triple increase comes as NASA has confirmed that April 2018 was the third warmest April since modern record keeping began in 1880.
The 2018 survey the 16th edition gathered information from institutional investors across 12 countries, reflecting total assets of around 1.1 trillion. In addition to investment strategy information, the report also explores the drivers behind Environmental, Social and Corporate Governance (ESG) integration and a few key areas within responsible investment: investor stewardship, active ownership rights and finally, the investment risks and opportunities posed by climate change.
Increased engagement due to regulatory nudges According to Phil Edwards, Mercers Global Director of Strategic Research, "Nudges by the UKs Pensions Regulator, the EU Commission and the Financial Stability Boards Task Force on Climate-Related Financial Disclosures (TCFD) are driving increased engagement. However, at 17% of respondents, there is further to go in terms of serious investor engagement on this issue. We expect the industry-led approach of the TCFD to continue to drive awareness of the issue."
Kate Brett, Principal in Mercers Responsible Investment Team, said: "A proactive approach to consideration of environmental issues can open up investment opportunities in the green fields of the low carbon economy, while inactivity by pension schemes brings risks from stranded assets and physical climate risks, as well as reputational risk. Given increasing regulatory involvement and public concern about climate change, it may be that in time a lack of consideration of ESG risks will be seen as a breach of fiduciary duty. We continue to work with our clients to help them integrate consideration of ESG within their decision-making processes."
Mercers 2018 survey (See Chart) found that 34% of survey participants cited regulatory drivers as the key factor in encouraging them to consider ESG risks. Twenty-five percent of respondents cited the financial materiality of ESG risks. The views of individual trustees and reputational risks were both cited as drivers by 18% of respondents. Ten percent cited the need to align the investment strategy with their sponsors Corporate Social Responsibility Strategy.
What/Who is the key driver behind the consideration of ESG risks? Source: Mercers 2018 European Asset Allocation Report
Climate change scenarios with impacts In 2015, ahead of the global climate negotiations in Paris, Mercer published Investing in a Time of Climate Change, a report outlining four plausible climate change scenarios (considering warming levels by the end of the century from 2?C to 4?C) and the impact that each scenario could have on investment returns. The report found that the biggest impacts were under a 2?C scenario and crucially that long-term investors could position their portfolios for such a scenario without materially reducing expected returns. A new edition of the report is due to be published later this year.
Mercer mit neuem Verantwortlichen für Pensionskassen
15.08.2019, 17:13 Uhr
Die Beratungsfirma Mercer hat in der Schweiz einen Briten zum neuen Ansprechpartner für Pensionskassen ernannt. Er arbeitete zuvor in ähnlicher Funktion bei der Konkurrenz.
Ausländische Vorsorgesysteme holen auf
08.11.2018, 14:37 Uhr
Im weltweiten Vergleich der Vorsorgesysteme von Mercer wurde die Schweiz ähnlich bewertet wie im Vorjahr. Allerdings wird sie von Chile, Neuseeland und Kanada überholt. Eine Reform ist gemäss der Studie überfällig.
Vorteile von Non-Core Immobilienstrategien
30.05.2018, 09:45 Uhr
Das Hinzufügen von internationalen "Non-Core Real Estate Assets" zum Portfolio eines institutionellen Anlegers bietet viele Vorteile. Ein neuer Bericht von Mercer Private Markets zeigt auf, wie sich der Aufbau eines...
"Die Inflationsrisiken zeigen nach oben"
24.04.2018, 17:16 Uhr
Die Inflation in den meisten Industrieländern war in den letzten Jahrzehnten moderat. Eine Fortsetzung dieses günstigen Inflationsumfelds ist jedoch keineswegs sicher, wie ein kürzlich veröffentlichtes White Paper...
USD 48 billion of new net money at Mercer Delegated Solutions
10.04.2018, 13:36 Uhr
Mercer assets under delegated management increased by approximately USD 70 billion in 2017, closing the year at USD 227 billion, up 45% from the previous year.
Verwaltetes Vermögen von Mercer Investments überschreitet 200 Milliarden-Grenze
24.01.2018, 09:45 Uhr
Die Beratungsgruppe Mercer hat ihr Investmentgeschäft in den vergangenen Jahren stark ausgebaut und verwaltet inzwischen mehr als 200 Milliarden Dollar über alle Anlageklassen hinweg.
Mit Impact Investing positive Effekte erzielen
03.01.2018, 13:41 Uhr
Immer mehr Anleger fragen sich, wie sie durch Impact Investing nicht nur "Schäden verhindern", sondern auch "Gutes tun" können. Impact Investments stehen aber noch am Anfang, wie Jane Ambachtsheer von Mercer...
Mercer surpassed 200 billion USD assets under delegated management
06.12.2017, 13:10 Uhr
Mercer announced its global assets under delegated management has reached over $200 billion USD.
Die Zweifel an festverzinslichen Absolute-Return-Strategien
14.11.2017, 08:20 Uhr
Sind festverzinsliche Absolute-Return-Strategien noch relevant? Gil Platteau, Head Schweiz von Mercer Investment Solutions liefert Research-Einsichten über die Leistung dieses Anlageuniversums.
Darum sollte man auf Multi-Asset-Credit setzen
03.10.2017, 16:17 Uhr
Anlagen in breit aufgestellten Kreditportfolios werden schon seit Langem angeboten. Gil Platteau, Head Investment Solutions bei Mercer Investments Schweiz in Zürich, erklärt das spezielle Konzept der...
