Obligations to consider climate risk in relation to the investments of the Mineworkers’ Pension Scheme

ClientEarth warns the Mineworkers’ Pension Scheme trustees that failing to address climate-related financial risks may constitute a breach of fiduciary duty. The letter outlines the material risks associated with fossil fuel assets, the opportunities in the low-carbon transition, and emerging market standards for asset owners. It provides a detailed set of recommended actions, including reallocating capital away from coal and high-carbon assets, adopting TCFD-aligned reporting, and pursuing active stewardship of portfolio companies.

• Trustees have a legal obligation to act in the best interests of members, which includes considering climate change as a material investment risk and evaluating the exposure of both scheme assets and the scheme sponsor to such risks.
• Fossil fuel assets, particularly coal, are highly exposed to climate risks; 54% of EU coal power assets already have negative cash flow, a figure expected to reach 97% by 2030.
• Climate-aware investing and the exclusion of high-carbon stocks from diversified portfolios do not negatively impact returns; evidence from MSCI low-carbon indices shows returns slightly better than the benchmark MSCI ACWI index over a five-year period to 2016.
• Market standards for asset owners in OECD countries (excluding the US) show a trend toward robust governance, the use of data analytics for risk management, and the adoption of divestment policies, with 67% of reviewed asset owners having such policies in place.
• ClientEarth recommends specific actions for the scheme to mitigate risk, including ceasing new investment in coal and risky fossil fuel assets (such as tar sands and arctic exploration), moving passive investments to low-carbon indices, and adopting TCFD reporting frameworks.
• The document suggests that active stewardship should include demanding 'climate competent' directors on portfolio boards and requiring transparency regarding lobbying and trade association memberships that weaken climate obligations.

APA

ClientEarth (2018). Obligations to consider climate risk in relation to the investments of the Mineworkers’ Pension Scheme. https://www.clientearth.org/media/b5zjxbxz/mineworkers-pension-scheme-legal-letter-ce-en.pdf

Chicago

ClientEarth. Obligations to consider climate risk in relation to the investments of the Mineworkers’ Pension Scheme. 2018. https://www.clientearth.org/media/b5zjxbxz/mineworkers-pension-scheme-legal-letter-ce-en.pdf.

Wikipedia

{{cite press release |author=ClientEarth |title=Obligations to consider climate risk in relation to the investments of the Mineworkers’ Pension Scheme |date=10 August 2018 |url=https://www.clientearth.org/media/b5zjxbxz/mineworkers-pension-scheme-legal-letter-ce-en.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{clientearth2018obligations, author = {{ClientEarth}}, title = {{Obligations to consider climate risk in relation to the investments of the Mineworkers’ Pension Scheme}}, publisher = {ClientEarth}, year = {2018}, month = aug, url = {https://www.clientearth.org/media/b5zjxbxz/mineworkers-pension-scheme-legal-letter-ce-en.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }