The article highlights why pension scheme trustees must treat systemic risks, such as climate change, financial instability or global shocks as financially material and central to their responsibilities.

It argues that focusing only on short-term funding goals can ignore long-term consequences for members and the wider system. Trustees are encouraged to adopt a 'systems mindset' through four actions: evaluate risks by identifying and planning for them, advocate by using their collective voice to influence policy, collaborate with other schemes to amplify impact, and mitigate risks by both reducing their likelihood and strengthening scheme resilience. The key message is that systemic risks cannot be avoided, only managed, and trustees must allocate time and attention to address them as an integral part of scheme governance.

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