14 May, 2021

Why serious investors demand more than just climate disclosure

Investors serious about climate change cannot settle for disclosure; their attention must now be on action, writes Sophia McNab of investment charity ShareAction.

Drax power station, carbon emissions, coal

The power-generation industry is one of the worst offenders for carbon emissions. Photo: Drax Power Station, Selby, North Yorkshire. By Neil Mitchell / Shutterstock

In 2014, when I first started engaging pension funds on the issue of climate change, a worrying number would respond that they could not take savers’ “ethical concerns” into account. Not only a simplistic reading of their fiduciary duty, but a complete misunderstanding of the financial risk posed by climate change. Since then the culture and discourse around climate risk has shifted significantly; climate change is now seen as a mainstream risk to financial stability by investors and regulators around the world. The recommendations by the Taskforce for Climate-related Financial Disclosures (TCFD) last year topped off years of work

Want to read more? Register with a few details to continue reading this article or log in.

For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda

climate change, climate risk, finance, Investor Decarbonisation Initiative, low-carbon economy, responsible investment, science-based targets, ShareAction, shell, Spring 2018, TCFD