Climate risk practical guidelines for directors
Over two years ago, in December 2015, the Paris climate agreement was concluded and then ratified the following year. Despite President Trump’s decision to leave the agreement, international support is great and possibly even strengthened.
China is clearly taking the lead, together with the EU. Non-state parties such as cities and large companies are also playing a leading role. It is no longer a question whether greenhouse gases should be drastically reduced but how, and whether it will happen fast enough to really meet the Paris objectives of keeping climate change within relatively safe margins. There is also an increasing awareness in the pensions world with regard to climate risks. Directors are beginning to address them. The Dutch Central Bank (DNB) has nominated this topic as the supervisory theme for 2018. However, as a pensions fund director, it's not so easy to answer the question of how you should deal with climate risks. This article provides some practical guidelines to address this issue.