Pension providers that do not address the risks posed by climate change could cause significant losses to members' retirement savings plans, warned a report by ClientEarth and ShareAction. They said people at most risk include those in auto-enrolment schemes and in a defined contribution default fund. The report, released on Tuesday, found pension funds were being forced into "extreme risks" because of their exposure to fossil fuel assets.
Pension providers that do not address the risks posed by climate change could cause significant losses to members' retirement savings plans, warned a report by ClientEarth and ShareAction. They said people at most risk include those in auto-enrolment schemes and in a defined contribution default fund. "The pensions of millions of savers could be seriously threatened if the Financial Conduct Authority does not step up … we are concerned that its failure to require providers to consider and manage climate risk could amount to a serious underperformance in its duty to savers," warned lawyer Joanne Etherton at ClientEarth.