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Asset managers don't account for climate risks

By Juliet Eilperin

The vast majority of the world's biggest investment managers do not factor climate-related trends into either their short or long-term decision making, according to a new survey released Wednesday.

The survey of the world's biggest 500 investment managers by the group Ceres, an advocacy group of environmentally-minded investors, shows that the increased political emphasis on risks associated with climate have not yet shifted the mindset of many influential money managers.

Eighty-four asset managers managing $8.6 trillion in assets completed the questionnaire.

Nearly three-quarters of asset managers do not expressly consider climate risks in their overall due diligence, according to the survey, and 44 percent said they don't consider global warming financially "material" to investment decision-making.

Mindy S. Lubber, president of Ceres, said the findings "make clear that the investment community is overly focused on short-term performance and ignoring longer-term business trends such as climate-related risks and opportunities."

In one effort to alter this trend, the California State Teachers' Retirement Systems (CalSTRS), announced Wednesday it will establish a policy where its equity managers will have expertise in climate change and must adapt their corporate governance voting practices to address climate risks.


Juliet Eilperin

 |  January 6, 2010; 12:40 PM ET Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   StumbleUpon   Technorati  
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