What impact trends and considerations can pension funds take into account to achieve greater positive and lower negative impacts?
Taking impact into account has never been more important. The world is set to reach the 1.5ºC level in the next two decades and only drastic cuts in carbon emissions from now on will prevent an environmental disaster. Rates of extinction have been underestimated putting the global biodiversity ‘30x30’ targets under threat. Also, the UN estimates $3.5-4tn is needed annually to meet the sustainable development goals (SDGs) by 2030. A large amount of the funding must come from the private sector and the onus is on institutional investors.