There is no Planet B
Chris Wagstaff, Head of Pensions and Investment Education, provides insight into how asset owners and asset managers should be responding to climate change.
Climate change is the greatest ever systemic risk to confront humanity. From a purely asset manager and institutional asset owner perspective, a failure by all stakeholders to act more decisively in stemming the myriad sources of GHG emissions, the financing of carbon emitting technologies and in seeking to change industry, company and individual behaviours could result in a deeply impaired economic and financial system. This would, in turn, severely inhibit the ability of asset managers to generate and asset owners to derive sustainable investment returns and expose asset owners to unacceptably high and largely unmanageable risks.