Resilient Portfolios and Fossil Free Pensions PDF

Resilient Portfolios &
Fossil-Free Pensions
ADAPTING CITY AND STATE PENSION

FUNDS FOR RESILIENCY TO 21ST CENTURY
RISKS AND FOSSIL FUEL EXPOSURE
Climate change and the fossil fuel industrys current business plan pose a
pressing risk to city and state pension funds. If pension funds remain tied
to past assumptions and ignore emerging trends, they could soon face
increased risks and potentially severe losses to their portfolios.
This paper highlights compelling evidence that fossil-fuel divestment is not only
a moral responsibility, but a feasible and prudent way to address this portfolio
risk. The paper also provides a set of fossil-free investing choices that can
deliver solid returns, as well as help address the climate crisis, advance clean
energy development, and increase the health and wellness of communities.
WHO SHOULD READ THIS PAPER: Trustees, leaders
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COMPLIANCE DISCLOSURE Co-author HIP Investor Inc. is a registered investment adviser in the states of California,
Washington and Illinois, with clients in additional states nationwide, and rater of ecological, social and human impacts
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analysis with HIP Investor. The contents of this analytical paper and its overview of investment choices are not investment
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consider their overall investment strategies and criteria. Nothing contained in this document is an offer of securities. Any
investment decisions should always be evaluated with a rigorous process and criteria of all future risks and potential return.
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I. INVESTMENT TRENDS & RESULTING RISKS

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VII.IMPLEMENTING A MORE RESILIENT &

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APPENDIX: SAMPLE CLEAN ENERGY CHOICES

& FOSSIL-FREE FUNDS TO CONSIDER
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Portfolio 21 Global Equity (PORIX for institutional

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www.portfolio21.com
SEPARATE ACCOUNT
Trillium Asset Management Sustainable

Opportunities Fund www.TrilliumInvest.com
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INFRASTRUCTURE
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Private fund investments to enhance environmental and agricultural health
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Solar Mosaic Solar Impact Line,

www.mosaic.com
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Resilient Portfolios &

ADAPTING CITY AND STATE PENSION

HOW TO USE THIS PAPER:&LW\DQGVWDWHSHQVLRQVDUH

THIS PAPER EXPLAINS:

I. INVESTMENT TRENDS & RESULTING RISKS

II. MAJOR RISKS FROM CLIMATE CHANGE

CLIMATE EXPECTED TO HEAT UP

Overreliance on Fossil Fuels, A Major Contributor to ESG Risks

III. OPPORTUNITIES TO REDUCE EXPOSURE TO

IV. FIDUCIARY DUTY: YOUR ROLE IN PREPARING

V. PENSION PORTFOLIO MANAGEMENT,

VI.PORTFOLIO CHOICES FOR ADAPTING TO

VII.IMPLEMENTING A MORE RESILIENT &

APPENDIX: SAMPLE CLEAN ENERGY CHOICES

Portfolio 21 Global Equity (PORIX for institutional

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