Governance and the Climate Risk Report

1: Survey highlights: Rising awareness

Awareness of climate risk and its impact on the investment world is rising rapidly, but there are a number of challenges confronting asset managers...

2: Creating a climate risk framework

Climate risk awareness may be rising but large gaps remain in how these risks should be measured, monitored and managed. The funds industry has emerged...

3: Importance of investment risk overlooked

When asked for the main drivers of future development of climate-related strategies (Q4), it is not surprising that ‘regulatory requirements’ was the most cited...

4: Internal governance still developing

It is also useful to compare the priorities for integrating climate risk into firms’ strategic thinking (Q9) with the drivers for climate change (Q4)....

5: Education and skills are key

People will also play a critical role, especially those with expertise and/or experience in climate-related work. As Q13 suggests, the industry could be facing...

6: Data availability challenge misplaced

As mentioned, data is critically important in the ESG world, not just for reporting but also for due diligence, risk management and performance tracking...

7: Reporting issues

The survey asks if firms are planning to provide reporting based on TCFD recommendations (Q19). Only one in five (19%) are already providing this...

8: Product development

The survey asked where the strongest demand for climate-related products lies with investors (Q23). The clear answer was for sustainable equity funds (30%) which...

9: Engagement vs divestment

The final issue explored in the survey is the role of the asset manager in encouraging better behaviour from the companies in which they...

10: Recommendations and regulation

The TCFDThe Taskforce on Climate Related Financial Disclosures (TCFD) was created in December 2015 by the Financial Stability Board to improve and increase reporting...

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
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CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
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