Asset managers for large investment funds are not taking climate risks into account in their investment strategies, according to a new report from Ceres.
The failure of the managers to factor climate trends into their decisions exposes their multitrillion dollar portfolios to “hidden risks.”
The survey was sent to the world’s 500 largest asset managers and 84 managers, with $8.6 trillion under management, responded. Nearly half said they did not consider climate risks at all.
Mindy S. Lubber, president of Ceres and director of the Investor Network on Climate Risk, said.
Despite the growing recognition of the far-reaching impacts climate change will have on the global economy, only a handful of asset managers are integrating climate risks and opportunities throughout their investment practices.
The report recommends that institutional investors push asset managers to pay more attention to climate-issues.