While the specific article "How long can big investors ignore climate risk?" from the Financial Times could not be directly accessed, related articles from the same publication highlight a concerning trend. According to one report, half of all financial institutions are not conducting climate analysis. This lack of diligence comes at a time when other articles suggest a "chilling effect" is spreading among European asset managers regarding climate concerns, even as the risks continue to rise.
Simultaneously, there is increasing pressure on asset managers to address their climate plans. For example, New York pension funds are putting asset managers on notice regarding their environmental strategies. Regulatory bodies are also stepping in, with the Bank of England's watchdog urging banks and insurers to rectify "gaps" in their climate risk assessments.
The issue has also led to divisions within the industry, as evidenced by a recent vote concerning Shell, which highlighted differing approaches among asset managers towards climate change. These reports collectively indicate a mixed landscape where awareness of climate risk is growing, but concrete action and consistent analysis are still lacking across a significant portion of the financial sector.
