"10 years after the sub-prime mortgage crisis that triggered a global financial crash, analysts are still largely ignoring long-term financial risks, such as those from climate change, the energy transition and disruptive low carbon technologies…
Although most asset owners analyzed in the report, such as pension funds and insurers, have long-term liabilities of 20 years or more, those managing these assets are far more short-term in their thinking, turning over these portfolios every 21 months on average."
[COMMENTARY] As many of you will agree, a short-term focus concerning portfolio performance may not be compatible with long-term liability management. Although the financial community is starting to embrace ESG, ESG is mostly about long-term performance and so requires a different mindset.
Is the finance sector really equipped to assess climate risks? By Michael Holder, March 9, 2017, GreenBiz, USA.