Why your pension fund may be causing climate change

The document highlights the financial risks associated with climate change, noting that $7.2 trillion could be lost from global portfolios by 2100. It calls for mandatory disclosure of investments by asset owners to ensure alignment with the Paris Agreement, advocating for a shift from fossil fuels to renewable energy to safeguard long-term returns.

• Climate change represents a substantial financial risk to global portfolios, with potential losses estimated at $7.2 trillion by the year 2100 if no further action is taken.
• There is a significant lack of transparency and mandatory requirements for asset owners, such as insurance companies and pension funds, to disclose their investments or ensure they are in sustainable sectors.
• Research involving 29 major European asset owners indicated that while most had reduced public equity funding for coal mining, many continued to invest in coal power and under-invested in renewable energy.
• To align investments with the Paris Agreement, the author recommends that the EU and its Member States mandate investors to assess and publish their climate alignment, following the recommendations of the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD).

APA

Godinot, S. (2017). Why your pension fund may be causing climate change. World Economic Forum. https://www.weforum.org/stories/nature-and-biodiversity/why-your-pension-fund-may-be-causing-climate-change/

Chicago

Godinot, Sébastien. Why your pension fund may be causing climate change. World Economic Forum, 2017. https://www.weforum.org/stories/nature-and-biodiversity/why-your-pension-fund-may-be-causing-climate-change/.

Wikipedia

{{cite press release |last1=Godinot |first1=Sébastien |title=Why your pension fund may be causing climate change |publisher=World Economic Forum |date=14 December 2017 |url=https://www.weforum.org/stories/nature-and-biodiversity/why-your-pension-fund-may-be-causing-climate-change/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{godinot2017why, author = {Godinot, Sébastien}, title = {{Why your pension fund may be causing climate change}}, publisher = {World Economic Forum}, year = {2017}, month = dec, url = {https://www.weforum.org/stories/nature-and-biodiversity/why-your-pension-fund-may-be-causing-climate-change/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }