Pension funds control trillions in global savings. But should they be doing more to support climate action? In this episode of Sustainable Views, the team explores the growing debate over fiduciary duty and whether pension trustees can, or should, prioritise sustainability alongside financial returns. Philippa Nuttall discusses with Elizabeth Meager and Florence Jones recent legal opinions suggesting that climate risk is a financial risk, meaning it may already fall within pension funds’ legal responsibilities.
Florence examines new developments in the UK, where the government is encouraging consolidation of smaller pension schemes into large megafunds capable of investing in infrastructure, clean energy and other long-term assets.
Beyond the UK, the episode looks at political and legal battles in the US and regulatory approaches in the EU, highlighting how ESG and climate considerations are becoming increasingly contested.
As lawsuits, politics and policy debates intensify, the episode asks a key question: can pension capital help finance the climate transition, or will legal uncertainty continue to slow progress?
You can watch this podcast on Sustainable Views or YouTube.
Read more here:
Trillions in US pension assets out of reach for local climate projects
ESG engagement stops at sovereign bond market
EU vastly underestimates debt impact of climate change, report shows
Editor’s note: where does sustainability end and defence begin?
Timestamps:
00:00 - Fiduciary and government roles in pensions
02:29 - What the UK government is hoping happens with pensions
06:46 - Global pension perspectives
12:24 - Future of investments
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