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.
Der neue Candriam Equities L ESG Market Neutral Fonds strebt laut Mitteilung «robuste, positive Renditen an, die sich von denen traditioneller Anlageklassen abheben, indem er in liquide Aktien aus den globalen...
«Ernährungssicherheit und Klimaschutz schliessen sich nicht aus»
27.08.2024, 14:07 Uhr
«Die Lebensmittelindustrie versucht, nachhaltiger zu werden. Noch bleibt aber viel zu tun und auch Investoren sollten ihren Teil beitragen», erläutert Eric Pedersen, Head of Responsible Investment bei Nordea Asset...
Robeco führt neue Klima-Index-Familie ein
27.08.2024, 09:11 Uhr
Robeco stellt laut Mitteilung eine neue Klima-Index-Familie vor, welche die zukunftsweisende Klimakennzahlen einbezieht. Diese Indizes sind so konzipiert, dass sie eine breite Anlegerbasis in verschiedenen Stadien auf...
«Geopolitische Konflikte lenken Interesse der Staatsinvestoren auf Schwellenmärkte»
05.08.2024, 12:27 Uhr
Die geopolitischen Spannungen haben die Inflation als grössten Sorgenfaktor der staatlichen Investoren abgelöst und führen zu einem grösseren Interesse an Emerging-Market-Allokationen, so ein zentrales Ergebnis...
Indiens Anleihen für erneuerbare Energien: Auf der grünen Welle reiten
30.07.2024, 09:33 Uhr
«Indiens Bedarf an mehr Ökostrom wird den Sektor der erneuerbaren Energien in den kommenden Jahren wahrscheinlich weltweit zum Ziel für Kapital machen», schreiben Vanessa Chan, Head of Asian Fixed Income...
Diese drei Impact-Investment gestalten die grüne Zukunft mit
17.07.2024, 07:00 Uhr
Soziale Probleme, Klimakrise und Umweltverschmutzung bieten Anlegenden die Chance, mit einer bewussten Kapitalallokation zu spürbaren Verbesserungen beizutragen. Thomas Sørensen von Nordea Asset Management zeigt...
Fünf Vorreiter bahnen den Weg in eine nachhaltigere Zukunft
10.07.2024, 13:31 Uhr
Die Klimakrise schreitet voran und ökologische Herausforderungen nehmen weiter zu. Trotzdem entstehen durch klimafreundliche Investments und innovative Lösungen neue Perspektiven. Nordea Asset Management leuchtet...
Robeco setzt beim Transition Investing neue Akzente
09.07.2024, 16:16 Uhr
Mit der Auflegung von zwei neuen Aktienstrategien und der Neupositionierung von zwei Anleihenstrategien stärkt Robeco die Position im Transition Investing. Es geht darum, das Wachstumspotenzial von Unternehmen beim...
«Der Swiss Stewardship Code ist radikal - das meine ich positiv»
03.07.2024, 12:15 Uhr
Im Interview äussert sich Cristian Pappone, Regional Head of Institutional and Wholesale Distribution, Switzerland & Austria bei Nordea Asset Management unter anderem zu den Unterschieden zwischen der Schweiz und...
«Nachhaltige Investitionen in Schwellenländer»
03.07.2024, 09:52 Uhr
Sind verantwortungsvolle Investitionen und Schwellenländer miteinander vereinbar? «ESG-Aspekte scheinen in diesen Teilen der Welt nur schwer anwendbar zu sein. Genau hinschauen lohnt sich», schreibt Linda Lehmann,...