Speaking Up on Climate Risk: Protect Your Pension and Shape a Resilient Future
Pension funds are more than numbers; they are a promise of financial security earned through years of hard work. As a stakeholder, you have real power to ensure that promise is protected, especially as climate change introduces growing risks to investments, local economies, and the broader financial system.
Speaking up at pension board meetings is one of the most direct and impactful ways to hold trustees accountable, advocate for responsible climate risk management, and shape decisions that will affect your own retirement and that of others.
Why is this so important? Climate-related financial risks can take many forms. From the physical effects of extreme weather on real estate and infrastructure to the economic shifts driven by a global transition away from fossil fuels, pension fund investments are exposed on multiple fronts. If these risks aren’t managed, the long-term stability of the fund, and by extension, the financial well-being of its members, could be threatened. Not only is it prudent stewardship to demand transparent climate risk assessment and mitigation, but it is also part of a board’s fiduciary responsibility to safeguard beneficiaries’ retirement security for the decades ahead. By actively engaging, you prompt funds to consider a wider range of risks and opportunities.
Stakeholder testimony has already played a role in encouraging some funds to adopt net-zero targets, perform climate scenario analyses, and increase investments in climate solutions. Board members hear from asset managers and consultants at every meeting, but the voices of members remind them who ultimately depends on their decisions.
Well-informed commentary can highlight the financial realities of climate-related risks, encouraging deeper disclosure and more informed policies. Sharing your perspective can also draw attention to gaps, such as the need for greater scrutiny of asset managers’ climate credentials. This stakeholder oversight creates pressure for funds to model different climate scenarios, align investments with transition plans, and adopt standards already embraced by leading pension systems around the world. Ultimately, testimony prompts trustees to weigh not just short-term results, but also the long-term health and integrity of the fund.
With this in mind, we’ve created a step-by-step resource and checklist for pension members, trustees, or stakeholders seeking to testify on climate risk. This guide explains:
How to prepare your testimony, from checking meeting rules to drafting an outline.
What to include in your comments, including personal stories, fiduciary connections, and specific climate risks.
Key points to emphasize include systemic, transition, and physical climate risks, as well as the importance of a clear climate transition plan.
Quick tips for delivering concise, confident testimony.
Factors to consider to amplify your testimony to fund trustees and staff, allies and the media.
Our downloadable, easy-to-follow checklist helps you organize your thoughts and make a strong case. Download the checklist here.
And, if you’re interested in learning more about effective transition planning, pension power, and shareholder engagement, check out some of CFA’s other resources:
