My Consultant
29th September 2015

Institutional investors are increasingly focusing on ESG risks, and climate change is high on the agenda. While climate change poses a broad range of risks to a diversified investment portfolio, there has been particular focus on the investment risks associated with fossil fuel exposures and the impact that increased policy action aimed at reducing climate change will have. Institutional investors have historically relied on their investment managers to manage these risks, but with growing stakeholder pressure on this issue, combined with swelling superannuation fund balances, more investors are taking some elements of ESG risk management into their own hands. In the following article, Kirsten Temple explores the considerations institutional investors may have when reviewing the ESG risks in their portfolio, and the role that divestment and engagement can play in a broader risk management framework.