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Fund boards need to do more on climate risk, finds survey

Climate changeFunds boards are not doing enough to identify, monitor and manage climate risks suggests research conducted by Funds Europe.

The report, 'Governance and the Climate Risk Dilemma', carried out in partnership with Caceis, found that while the vast majority (83%) recognised that asset managers face greater reputational risk if they do not adhere to their climate commitments, there is far less progress on recognising climate as an investment risk and implementing climate risk frameworks within their organisation.

Only 36% of respondents said that their asset management boards are overseeing the integration of climate factors into business and risk management processes.

Furthermore, just 19% of respondents stated that their firm has a reporting process in place to provide full disclosure on forward looking, climate-related investment risk.

More than a third (34%) of respondents stated that they are in the process of putting such a framework in place.

The full report, which surveyed almost 250 investment professionals, can be accessed here. 

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