US shareholder pressure on climate risks

A significant increase in the number of shareholder resolutions at annual meetings has been reported here.  It’s noteworthy that among these resolutions are some of the largest US pension funds.  It’s long been the case that pension funds (in Australia, superfunds) with vast funds at their disposal for investment, are exposed to unrecognised and unquantified climate risks.  It’s only recently that they have turned this exercise, although insurance companies like Munich Re have been doing it for at least a decade, and in some areas have lead the development of risk techniques to analyse the extensive ramifications of climate risk.  It is difficult work, because the climate systems are so large and volatile and complex, but it has to be done, and built into the valuation models that funds use to determine the best investment opportunities.  It now seems that this is going to be driven strongly by shareholder activism, as reported here.

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