The IPCC’s sixth climate change report published in August 2021 gave a clear statement on the realities and risks of climate change. 

But what could the government policy response to this mean for investors looking to manage risks and fulfil fiduciary duties, and where do the opportunities exist? 

For our latest report, we carried out an extensive climate risk profiling of a large dataset of UK institutional investors. Three key themes emerged: 

• Risks – find them, understand them. 50% of UK asset owners have significant climate transition risks in their portfolios.
• Net Zero – the standard for investor climate action and risk management.  
• Opportunities – a low carbon transition means a once in a generation flow of capital. 90% of UK institutional investors could significantly reduce their climate risk exposure over the next decade.

This report was initially published in September 2021 and updated in December 2021.

What's inside?

• Conclusions and next steps for asset owners, asset managers, advisers, government and regulators. 
• Our five-tier scale, which provides a straightforward way to triage an institutional investor’s exposure to climate related risks in their portfolio.
• Three practical steps in equities, corporate bonds and gilts to better align them with the goals of the Paris Agreement. 

Further listening:

• Investment Uncut: The tip of the iceberg