Delivering climate-aware credit investing for pension scheme clients - AXA Investment Managers

As the crucial COP26 climate summit approaches in Glasgow this November, UK pension schemes find themselves well positioned to act on climate change risks.

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... As pension schemes mature and move towards a fully funded position, and perhaps embark on cashflow-driven investment (CDI) strategies, thoughts must turn to de-risking and to endgame objectives. As this happens, climate change has steadily emerged as one of the central themes for any investor on this pathway.

Simply put, in any CDI strategy a lot of the focus is necessarily on successfully managing downside risk in the assets held – and that now clearly includes both the physical risks of climate change and the risks inherent in the transition to a net-zero world.

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