Most global investors recognise financial risk of climate change, report finds

For the first time a majority of global investor heavyweights recognise the financial risks of climate change, according to the results of a major global index rating how investors manage such risks.

Penguins in Antarctic are vulnerable to climate change.
 Three of Australia’s big four banks are currently reviewing
their exposure to fossil fuels in response to climate change.

But despite the advances, the Asset Owner Disclosure Project chairman, John Hewson, has warned there is still an “enormous resistance” to managing climate risk.

The AODP releases its fifth global index on Wednesday, ranking the world’s largest 500 asset owners and, for the first time, the 50 largest asset managers on their performance managing financial risks associated with climate change.

Asset owners and managers were scored on governance and strategy, portfolio carbon risk management and metrics and targets, and graded as leaders (A-AAA) rating), challengers (B-BBB), learners (C-CCC), bystanders (D-DDD) and laggards (X).

The index found that 40% of asset owners and just 6% of asset managers were classed as laggards, meaning they had a scored zero on the measures for managing and disclosing climate risks.

Read Paul Karp’s story in The Guardian - “Most global investors recognise financial risk of climate change, report finds.”