Climate risk

Of all the environmental, social or governance (ESG) risks facing investors, climate change has arguably the greatest potential for widespread impact across individual corporations, sectors, asset classes and economies.

As a long term investor, a changing climate presents significant long-term risks to the value and security of pension scheme investments and capital markets more broadly.

The changing climate presents a variety of risks and opportunities for pension fund investors. Investment practices should therefore seek to protect assets from climate risks such as weather events and regulatory change, while simultaneously seizing the new opportunities that a low-carbon economy presents.

NILGOSC has developed a Climate Risk Statement to sit alongside the Statement of Responsible Investment. The Statement acknowledges the importance of climate risk as an investment issue and sets out the steps which will be taken to address it.

NILGOSC has also prepared a briefing note for members on how it is responding to climate change.

Finally, we have also put together a short video providing an overview of our approach.