The world is heading for mortality rates equivalent to the Covid crisis every year by mid-century unless action is taken, according to Mark Carney. The former central banker said the investment needed to avert millions of deaths was double current rates.
The Jesuits in Britain are one of 15 institutional investors with a combined US$2.4 trillion in assets under management that have filed a climate change resolution at HSBC, alongside 117 individual shareholders.
In early November, superannuation fund Rest and 25-year-old member Mark McVeigh agreed to settle McVeigh’s case against Rest related to handling of climate change risk. McVeigh’s claims included that the trustee of Rest had breached its duty to exercise the care, skill, and diligence required of a professional superannuation fund trustee in failing to identify and manage climate related risks to the fund’s investments. He also claimed that the failure to identify and manage climate related risks was a breach of the trustee’s duty to protect the best financial interests of beneficiaries. This litigation and settled outcome is significant, not only to Australian superannuation fund trustees, but to fiduciary investors with long term investment horizons globally.
Aviva has set a new 2050 net-zero carbon emissions target for its own auto-enrolment default pension funds. This is aligned to the Paris Agreement and the Government’s own net-zero target. Aviva is committed to making progress towards the net-zero target as quickly as possible and is exploring the feasibility of a 2030 target, in-line with the Intergovernmental Panel on Climate Change (IPCC) 1.5-degree pathway4. As part of Aviva’s strategy to achieve this, it plans to invest over £5 billion into low carbon equities and climate transition strategies across its default funds over the next 18 months and will look to increase this level of investment after that.
Banks face intense competition for new generations of wealthy clients set to inherit huge sums from the world’s richest people — estimates range from $15 trillion to $68 trillion — and the future is clear: For the generations that will experience the worst impacts of climate change, it will be a simple decision to put their money in banks that profit from reducing warming and leave behind banks that continue to finance carbon-intensive energy.
A study published by global consultancy group KPMG found that most businesses are still without a clear climate change plan, despite an increase in ESG pressures from investors and other stakeholders. Riskthinking.ai’s patented scenario generation platform and analytics helps business leaders plan for future climate risk.