The investment risks of climate change

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IFM Investors’ purpose is to protect and grow the retirement savings of working people, and, as fiduciary investors, we believe it is in our financial interests to have a plan that addresses the risks of climate change: climate risks are investment risks.

This article is the first in a two-part IFM series on climate-related investment risks. It covers how we assess and better understand climate-related investment risks across our four asset classes – infrastructure, equities, debt and private equity.

As supporters of the Paris Agreement, we explicitly factor climate change risk into all of our investment decisions. We also engage and work with investee companies to support their transition to a low carbon economy in ways that create positive environmental and social outcomes, and through those, better commercial and investment outcomes.

Chris Newton
Executive Director, Responsible Investment

We believe it is in the interests of our investors and their members and beneficiaries to understand and mitigate climate risks within our business and our portfolios, while accepting that the transition to a net zero emissions economy will take time. Our focus remains on limiting our emissions, managing and reducing risk and harnessing opportunities in the evolving global landscape.

Following IFM’s commitment to reduce greenhouse emissions across our asset classes, targeting net zero by 2050, we are conducting more detailed scenario analysis to further enhance our understanding of, and response to, climate-related physical and transition risks.

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Chris Newton

Chris manages a team of responsible investment specialists that work closely with our investment teams to enhance responsible investment strategies and support the ESG needs of our investors.

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