Ignoring Climate Risk Risks Liability For Pension Fund Trustees And Fund Managers

Pension fund trustees and fund managers can no longer ignore the risk that climate change poses to their investments, particularly in the longer term. That was the conclusion of a high-level seminar this week to mark the two-year anniversary of the Law Commission report 'Fiduciary Duties and Investment Intermediaries'.¹

The report found that many pension fund trustees and managers were under significant misapprehensions about their fiduciary duties and the extent to which the current law allows them to factor environmental, social and governance issues into their investment decisions. Subsequent research has revealed that similarly, many trustees and fund managers are both unaware of the extent of the risk that climate change may pose to their investment portfolio, and of their need to assess it.