Preventable Surprises – a ‘think-do’ tank which seeks to assist institutional investors align their activities with the long-term needs of their members and customers – published in October 2015 Institutional Investors and Climate-Rated Systemic Risk. This paper is designed to provoke discussion about the case for forceful stewardship to take its place as an investor strategy for managing climate-related systemic risk alonside divest-invest (i.e. divestment combined with green investments such as climate bonds, green equity and other asset class funds) and portfolio carbon management (i.e. portfolio decarbonization, tilting and strategic asset allocation). The paper also looks at how forceful stewardship guidelines can be implemented in different countries and through different players in the investment system.
