A Practical Guide for Fiduciaries

About this toolkit

reportAre you an investor concerned about the future of your fund and the future of the world, or a pension plan fiduciary whose overriding focus is the financial interests of your beneficiaries and the long-term interest of your plan? This toolkit will help you take climate change into consideration with your fund while respecting concerns about fiduciary duty and investment performance.

The toolkit helps trustees and other fiduciaries understand and address the impacts of climate change in their portfolio. Aimed at trustees, asset managers, and financial consultants managing small to medium sized funds, the guide will be useful to all funds struggling with this issue.

This toolkit is intended to help investors examine climate change from different angles. It explores various interconnected approaches: integrating climate change into your investments, reducing your portfolio’s carbon intensity, investing in climate solutions, divestment, engaging with corporations, and engaging with policymakers. Each tactic has its advantages and disadvantages. Not all of them will be right for every investor. The aim here is not to advocate a particular approach; it is to support you in making decisions that make sense for your fund and institution.

At the core of this toolkit are:
  • A decision-making process you can customize for your fund, including how to work with consultants, managers, and legal counsel
  • An implementation guide for your strategy
To support you in these processes, we provide information on:
  • The science and impacts of climate change
  • The financial implications of climate change
  • Fiduciary duty and climate change
  • The impacts of climate change on workers and communities
  • Available actions and examples of what peer investors are doing

For each of these you can find a high-level summary in the main part of the toolkit, with more detail in appendices.

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