AODP launches first global Climate Index for asset owners

The Asset Owners Disclosure Project has launched the first global climate investment index to provide an indication of how 1,000 of the world’s biggest investors, such as pension funds, are managing climate risk.

AODP said the index suggests many pension funds, insurance companies and sovereign wealth funds are still ignoring the issue.

Just six funds rated ‘A’ or above under the new index measure. No fund in Europe achieved a ‘AAA’ rating, the organisation said, despite being the region with the highest proportion of the largest asset owners after the US.

Data for the index came from 800 pension funds, 80 insurers, 50 sovereign wealth funds and 50 foundations/endowments.

Sharan Burrow, AODP board member and general secretary of the International Trade Union Confederation said: “We applaud the efforts of the leaders – most of whom are European – but even many of those provide scant information to us as stakeholders to allow us to see how they are managing our future.”

“As for the laggards, working people should expect more from the people who they have trusted with their retirement savings to manage the long term. These funds need to wake up to the scale of climate risk but also members need to start applying pressure to drive the change.”

The survey focused on five main categories – transparency, risk management, investment chain alignment, active ownership and low carbon investment. It includes asset owners from 63 countries, in all regions of the world, with about $60trn under management.


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