Dec 21, 2010 - 3:30pm
An action plan setting out strategies enable super funds to better manage climate change risk and opportunity was launched today by The Climate Institute.
“Australian superfunds manage over $1.2trn in retirement nest eggs and surveys show that they are at the very early stages in understanding how to protect these investments against the risks of climate change,” said Julian Poulter, The Climate Institute’s Business Director.
“Our Climate Change Best Practice Methodology sets out a plan for action along with detailed processes to address key issues. It is designed to assist asset owners in building capability to world’s best practice that will increase members’ long-term returns.
The Methodology, available from The Climate Institute website is a step-by-step guide to assist asset owners in designing and implementing a programme that will raise the standard of climate change management in their organisation to the highest global industry standards.
With a project governance framework, the Methodology provides resources for asset owners to initiate a program of work to improve their management of climate change risks and opportunities. Resources include templates, checklists, evidential dossiers, best practice examples, research databases and implementation guidelines. It guides asset owners from start to finish and includes every aspect of climate change capability development.
Key features of the Methodology are:
- Integration of climate change risks and opportunities into investment strategies;
- Restructuring the processes within the investment chain to better account for systemic long-term risks;
- Implementing systems to check that the processes in place are sufficient to manage climate change risks and opportunities on an ongoing basis.
Independent surveys by The Climate Institute and The Australian Institute of Superannuation Trustees into super funds’ management of climate change risk and opportunity found progress on policy development and the understanding but little material progress on managing the long term risk. The Methodology aims to help close this gap between intention and action.
“The Methodology is designed to fill the gap in the knowledge of super fund’s to manage climate change risk and help them gear-up for action, said Mr Poulter.
For further information:
Julian Poulter | Business Director, The Climate Institute |