EU requires pension funds to assess climate change risks


sustainability.thompsonreuters.com Published 25 November 2016

By Francesco Guarascio

(Reuters) EU pension funds will have to include environmental risks in their investment strategies, under a law passed on Thursday, that ecologists hope will encourage money to flow out of fossil fuels and into greener sectors.

A large majority in the European Parliament backed the law that requires managers of retirement funds to take into account the “environmental, social and governance risks” of their investments.

The vote confirms a deal already reached with EU governments so its final approval is now a formality.

It comes as the European Union looks at other measures to reduce long-term systemic risks linked to climate change, extreme weather or volatile energy prices. Finance ministers have discussed the possibility of carbon stress tests for financial firms.

Under the new law, the potential negative effects of climate change or political factors on retirement funds will get the same level of attention as liquidity, operational or asset risks.

“This is a big success for the promotion of investments in sustainable products,” German Greens lawmaker Sven Giegold said, adding that the law “paves the way for the introduction of fossil divestment by European pension funds”.

read more>


Upcoming Events & Seminars

More Events »

Whipp Tips & News

Meet Triodos, the ethical investment firm trying to fund a better world

Investors are tired of questionable practices where executives at underperforming businesses are paid huge bonuses, and of companies making staggering amounts of money at a huge cost to the planet.

Details »

Renewables Investment Nudges Out Fossil Fuel And Nuclear

In 2017, global investment exceeded US$ 333 billion, compared to only US$ 144 billion invested in conventional fossil fuels and nuclear.

Details »

How socially responsible investing can help you avoid catastrophic drops within your portfolio

According to research from MSCI, companies in the bottom ESG quintile have been twice as likely to suffer a catastrophic loss (over 95% cumulative loss) within three years.

Details »

More News »


:www.leedejonesgable.com

The information in this website was obtained from sources believed to be reliable, however, we cannot guarantee that the information is accurate or complete. The information provided is a general source of information and should not be considered personal investment advice or solicitation to buy or sell securities.

Leede Jones Gable Inc. is a
Member of IIROC and the Canadian Investor Protection Fund
Stephen Whipp is a member of the Responsible Investment Association