Climate change is a material financial risk to investors. It is therefore important that asset owners and their advisers have the necessary skills and resources to address climate-related risks and opportunities for their investments.
In this document, we focus on LCP’s climate competency as investment consultants, whilst acknowledging that climate change is important for all parts of our business.
We have been building our expertise in climate change for over a decade and it is now an integral part of our investment consultancy services.
Climate change has the potential to permanently destroy value for investors; it poses major threats (as well as opportunities) to the environment, society, economy and to the financial system as a whole. We therefore fully support action to mitigate climate change by transitioning to a low carbon economy, meeting net zero emission targets and adapting to the physical effects of climate change.
We encourage our clients to align their investment strategy with net zero emissions by 2050 - this is incorporated into our overall responsible investment philosophy. We seek to improve both our clients’ financial outcomes and real-world outcomes.