The Chief Investment Officer of the British Business Bank, Leandros Kalisperas, stated that current climate risk assessments on pension investments may not be credible. He acknowledged that current assessments have inaccuracies, but emphasized the need for practical solutions to address climate risk. This comes as climate protesters gathered outside a pension conference, urging delegates to update risk assessment methodologies, citing a report that found climate and nature-driven risks have been underestimated due to flawed economic modeling. An LCP investment partner, John Clements, suggested that instead of divesting from fossil fuel companies, pension schemes should set clear expectations for them and threaten divestment if they fail to meet targets. Many pension funds, including 65%, have committed to net zero, with 22% of those who do not expect to adopt a commitment within five years.
Offset by 2025, the reliability of current climate change risk assessments could be called into question.
