The second Risky Business report (Heat in the Heartland: Climate Change and Economic Risk in the Midwest), released last Friday, warned that unchecked climate change will result in extreme heat and adverse impacts on agriculture, manufacturing and labour productivity.
There are almost $1 trillion of assets under management in all Midwestern pension funds. Worryingly, no regional public pension fund has factored in the risk of climate change in their portfolios. Of all Midwest institutional funds, none rated higher than a D on the AODP Global Climate Index.
Savers in the Midwest are not only going to feel the effects of climate change in their everyday lives and their jobs, but also in their retirement funds. Trillions of dollars of fossil fuels are unburnable if the worst of climate change is to be avoided. The fact that trustees of midwest pension funds are putting their members retirement savings at great risk from climate and carbon is astonishing – a double-whammy for savers in the mid-west.