Managers try to weigh risks of climate change
CALGARY — A decision by an Ontario public pension manager to study the potential consequences of climate change is the latest sign that pension plans are increasingly becoming concerned about how it can hurt the bottom line. OPTrust released a report last week that reviewed how four climate scenarios, factoring in policy changes and disasters including hurricanes and wildfires, would affect its $18-billion portfolio. The study comes as insurers, pension plans and other organizations particularly exposed in the coming decades to climate change try to figure out how to measure the risks and what to do about them. Last September, a report from Toronto-based law firm Koskie and Minsk concluded climate change is one of the biggest risks faced by Canadian pension plans.