Responsible Investor Feature: US public pension funds falling short on climate risk, say NGOs

Responsible Investor recently covered CFA’s research on how US public pension funds are falling short in addressing climate change as a systemic financial risk. The article highlights CFA’s findings that governance gaps, outdated risk models, and siloed decision-making continue to limit funds’ ability to manage climate risk and scale credible climate solutions across portfolios.

The piece also underscores CFA’s warning that widely used climate scenarios underestimate the economic consequences of warming, creating what CFA describes as a “fiduciary mirage” that leaves long-term portfolios exposed to systemic risk.