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