The majority of pension funds have either embedded or are in the process of embedding climate change goals into their investment portfolios, according to the latest DWS-sponsored survey of global pension funds from CREATE-Research.

However, the report says that a bigger push is required if pension funds are to meet their net zero ambitions, with 60 per cent of those surveyed believing their net zero aims will not be met under current conditions. This suggests more bespoke solutions and the focus on stewardship could be more important than ever.

The survey of 50 large pension funds based in North America, Europe and Australasia, which collectively manage EUR3.3 trillion in assets (as at 31, December 2021), found 16 per cent of respondents have fully embedded climate change goals into their investment portfolios. Forty-two per cent are in the process of implementation, with 22 per cent close to decision-making and 20 per cent at the awareness-raising stage. Net zero strategies are therefore being pursued by almost three in five respondents.

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