A new report issued by London think tank Carbon Tracker has uncovered that UK pension funds are relying on financial research which give an inaccurate perspective of the financial risk associated with climate change.
UK consumers in need of independent financial advice in Chester, Southampton and other major cities often consult wealth management firms. Acting as independent financial advisors (IFAs), wealth management teams provide their clients with a clear picture of the financial risks connected with different asset classes so they can make an informed decision.
The recent study for Carbon Tracker was undertaken by Professor Steve Keen, a research fellow at the University of London and its head of economics. Entitled “Loading the Dice against Pensions”, the report asserts that climate economists are perpetuating assumptions that are scientifically false.
The report explains how using flawed research can lead to a clear disconnect between the likely impacts of global warming that could potentially include the collapse of asset values and present investment decisions that presume that climate change will have a relatively trivial impact on assets.
Professor Keen commented that many pension funds employs investment models that are predicting minimal impact on investment portfolios even in a scenario when global warming hits 4.3 degrees Celsius, as climate scientists warn that such circumstances will present a great threat to our civilization.
He warned that in the same way that economists in the mainstream failed to forecast the global financial crisis which occurred in 2008, our world could now be headed towards an even larger crisis.
