market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en-18b7fa4993ead56b.pdf

The report finds that climate risk is increasingly viewed as a material financial risk rather than a niche ethical concern, driving asset owners to improve governance and risk management. While 67% of the sampled asset owners have divestment policies and many are adopting TCFD-aligned reporting, there is a significant gap between public and private sector disclosure. Most asset owners focus on long-term risks and equity portfolios, with limited progress in quantifying risks or performing scenario analysis across all asset classes.

• Fiduciary duty and the pursuit of long-term risk-adjusted returns are the primary drivers for asset owners addressing climate risk, as it is increasingly recognized as a material financial risk.
• Governance structures are strengthening, with 97% of the 30 analyzed asset owners disclosing participation in governance activities. 67% of these are classified as 'Highly Robust', meaning they have board-level updates, formal management responsibilities, and climate-related investment policies.
• Asset owners are lagging in the full adoption of TCFD strategy recommendations; most focus on long-term effects, and only one asset owner in the sample publicly disclosed the quantification of climate-related financial risks.
• Divestment and exclusion policies are common risk management tools, with 67% of the reviewed asset owners having such policies in place, often targeting high-emitting industries like fossil fuels or mining.
• Carbon footprinting is widely used but primarily limited to public equity portfolios; 50% of the sample only disclose metrics for public equity, while 40% cover both public equity and corporate bonds.
• There is a disparity in disclosure between public and private sector asset owners, with the latter providing significantly less public information. No reviewed asset owner has fully embedded climate risk within its mainstream financial and investment risk disclosures.

APA

ClientEarth (n.d.). market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en-18b7fa4993ead56b.pdf. https://www.clientearth.org/media/3i1by34b/market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en.pdf

Chicago

ClientEarth. market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en-18b7fa4993ead56b.pdf. n.d. https://www.clientearth.org/media/3i1by34b/market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en.pdf.

Wikipedia

{{cite report |author=ClientEarth |title=market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en-18b7fa4993ead56b.pdf |url=https://www.clientearth.org/media/3i1by34b/market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{clientearthndmarketstandardsonclimaterelatedriskbyassetownersclientearthsustinericollen18b7fa4993ead56bpdf, author = {{ClientEarth}}, title = {{market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en-18b7fa4993ead56b.pdf}}, institution = {ClientEarth}, url = {https://www.clientearth.org/media/3i1by34b/market-standards-on-climate-related-risk-by-asset-owners-clientearth-sustineri-coll-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }