The sweeping nature of climate change means it could have an effect on investment portfolios. It’s also clear that insurance and financial services could have a positive influence on all economic sectors that have major impacts on our environment.

Recent economic conditions have seen a reduction of investment in equity and property, with more funds directed towards low-risk investments, such as fixed income and government bonds.

While this is a more sustainable economic strategy for companies, it makes it harder to assess environmental risk, because of a lack of disclosure and voting rights.

Environmental considerations are often presented as moral rather than business issues. We believe they will gain more widespread acceptance in the financial markets if they are explained more clearly in business terms, as drivers of sustainable long-term value and with sufficient evidence to back up this claim.

Our aim is to work in partnership with all stakeholders in the investment process to understand factors such as climate risk.

We will research and establish a business case for the integration of considering environmental risks within investments and pensions.

To find out more on WWF work on investments read Carbon Risks in UK Equity Funds.