Two initial complimentary reports from the Trillion Dollar Transformation are:
A Guide to Climate Change Investment Risk Management for US Public Defined Benefit Plan Trustees by Mercer Investment Consulting
This paper provides an overview of climate change investment risks and opportunities for US public pension trustees, and introduce both quantitative and governance frameworks that trustees can use to approach climate change as an investment risk (as opposed to a nebulous uncertainty) and informs related tangible actions.
Fiduciary Duty, Divestment, and Fossil Fuels in an Era of Climate Risk by the Center for International Environmental Law (CIEL)
This report addresses the legal implications of a rapidly changing landscape for pension funds and pension fund fiduciaries in the context of climate change. By not adequately accounting for climate risks, public pension fund fiduciaries may be ignoring responsibilities they owe to the beneficiaries of the funds they manage. Current patterns of investment and risk management are not adequate to protect against climate risks, and pension funds should adopt new strategies to adapt to the changing legal, financial, and social environment. A failure to do so may result in significant financial losses for the funds and legal liability for trustees and other fiduciaries.
Key Findings
You might like to download this 2-pager describing the key findings and recommendations from both reports.
