Institutions getting serious on climate change
The majority of pension funds around the world are taking climate change into account in their manager selection process, according to a Mercer survey.
The Global Investor Survey on Climate Change, conducted by Mercer on behalf of three global institutional investor bodies, found 78 per cent of asset owners consider climate change when choosing managers - although mandates are rarely awarded based solely on climate issues.
Fifty-three per cent of asset owners are currently monitoring their investment managers when it comes to climate risk, according to the report.
Seventy-six per cent of asset owners and 82 per cent of asset managers provide "some form" of climate risk reporting, but levels of public reporting are lower, according to the survey.
Nathan Fabian, chief executive of the Australian and New Zealand based Investor Group on Climate Change said investors are responding positively to climate policies and are "deeply assessing climate risks in their portfolios".
"The challenge facing investors remains how to change investment allocations to position for worsening climate risks that are not fully captured in the current policy and market signals," he said.
The Mercer survey was based on survey responses from 42 asset owners and 51 asset managers, with collective assets totalling over US$12 trillion.
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
