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Climate risk and fiduciary duties | 552.02 KB |
Climate change is a systemic threat to the financial system and presents a material risk to the investment returns of long-term asset owners and their underlying superannuation members. Central banks and national financial regulators are increasingly warning of the financial risks of climate change.
Investors have a clear legal obligation to manage climate risks. In addition, financial regulators around the world are now requiring a proactive response from investors and companies to manage climate related financial risks in order to ensure financial stability.
Institutional investors are responding to climate risks in a range of ways. They are: