When pension funds first embark on their climate action journey, the initial focus tends to be on how to reduce the carbon footprint of the portfolio. Strategies such as divestment, engagement, sustainable investing and renewable energy impact investing tend to be the most frequently discussed topics. At Pensions for Purpose, we try to broaden those horizons to a wider debate about how to address the global challenge of climate warming. Biodiversity is inextricably linked to that goal. Not only does global warming impact biodiversity negatively but investing in biodiversity can also help reduce global carbon emissions through carbon sequestration. Our focus in Q2 was on biodiversity.If this summer has told us anything, it is that climate change is impacting our every day lives. The risks of the physical impact of extreme weather conditions such as prolonged high temperatures, drought, flooding, hurricanes and rising sea water is something that all organisations need to consider with a growing urgency. How pension funds might mitigate against this risk has been the focus of our Q3 discussions on the Paris Alignment Forum. Karen Shackleton, Lead, Paris Alignment Forum
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