The pensions sector is currently relying on economic research ignoring critical scientific evidence about the financial risks associated with a warming climate. The economic climate risks models applied by the sector severely underestimates the impact of climate change on the economy and in turn pension holders’ portfolios. This results in pension funds continuing investment approaches which could lead to more than 3°C of global warming, instead of diversifying and divesting away from fossil fuels in line with the goals of the Paris Agreement.
To address this problem, Carbon Tracker has teamed up with Professor Steve Keen of University College London to create a comprehensive analysis of the true risk of these investments, and concurrently convene decision-makers in the national finance ministries, central banks and financial regulatory bodies - with an initial focus on Europe, including the UK - to push for reform of the climate-related financial risk regime within financial institutions.
Carbon Tracker Initiative Limited
Carbon Tracker is an independent financial think tank and research organisation established in 2011 with a mission to accelerate the energy transition by shifting financial markets. They have been a KR Foundation grantee since 2016.
