The fundamental priority of fiduciary duty in the pension system is clear: ensuring pensions are paid to members for a secure dignified retirement. As pension funds grow, so does their responsibility to safeguard the financial security of millions of workers. However, fulfilling this fiduciary duty extends beyond wealth accumulation—it involves managing investments wisely, with an eye toward long-term economic stability for members by integrating climate accountability into their policies and investment strategies.

With a steady increase in cleantech investments come technological advancements and opportunities to generate new jobs in research and development, installation, maintenance, and other areas. Energy jobs, in particular, tend to pay higher wages than the national average, making cleantech a significant avenue for economic growth. Recently, the industry has seen regional success with about one-third of clean energy jobs in Texas and California, Georgia, leading the country in planned jobs around cleantech, and available clean energy jobs in Minnesota growing nearly five times faster than the state's overall job numbers, illustrating the potential of the green economy to drive rapid job creation.

On November 7, 2024, at MassChallenge in Boston, authors Suchi Gopal and Josh Pitts launched their groundbreaking book, The Fintech Revolution: Bridging Geospatial Data Science, AI, and Sustainability, published by Springer. The event brought together leading voices in finance and technology, featuring a panel discussion with three distinguished experts who explored the book’s central themes and the transformative power of cutting-edge technologies.

Systemic risks are especially dangerous for pension funds, which rely on long-term stability to ensure workers' financial security during retirement. A sudden market shock can undermine years of careful investment planning, destabilizing the fund and jeopardizing millions of workers' retirement security. A primary source of systemic risk is climate change, which poses escalating threats. Climate-related events—such as extreme weather and environmental degradation—destabilize financial markets, disrupt essential systems like supply chains, infrastructure and housing, and jeopardize community health.

Rising temperatures, biological hazards and toxins, and extreme weather events are causing long-term health issues, such as respiratory and cardiovascular diseases, heat-related illnesses, and trauma-related conditions. Non-disabled workers in high-risk jobs are increasingly exposed to these hazards, leading to a growing population of climate-affected disabled workers.

Climate Finance Action (CFA) has curated essential resources that provide in-depth insights into responsible investment and climate finance to address this need. These resources clarify the most effective ways to implement ESG criteria, integrate climate risk management into decision-making, and understand how values-aligned investing can influence corporate behavior and foster resilience against climate risks.

At its core, mobilizing public capital means leveraging the financial power of these funds to fuel real change. Investing in clean energy and climate resilience can drive positive social and environmental outcomes and build a more equitable economy, filling critical gaps left by private investments. Additionally, public capital can encourage corporate accountability, promoting improved governance standards.

We're thrilled to announce a significant achievement in our ongoing work at Climate Finance Action. Our Executive Director, Mary Cerulli, has made a substantial contribution to the upcoming book FinTech Revolution: Bridging Geospatial Data Science, AI, and Sustainability, scheduled for release by Springer in 2024. This book, a unique exploration of how FinTech and emerging technologies are leveraged to tackle climate risks.

Time and again, worker pension funds have been invested in ways that directly undermine the workers who contribute to them. Some of this behavior is attributable to fiduciary duty drift - chasing returns and short-term results pressures. Realigning fiduciary duty with pension fund participants' and beneficiaries' actual economic interests is critically important for restoring worker confidence in their retirement funds and advancing worker interests in the 21st century. Whether by statute, interpretive letter, or investment policy reform, the time to act is now.

CFA Climate Chats bring together workers and experts to discuss the vital role that pension systems play in advancing climate action. In the first episode Beverly Ortiz, Organizing Director at Climate Finance Action speaks with Mike Powers, President, Service International Employees Union (SEIU) Local 503, OR. Mike Powers is an influential leader with over two decades of involvement with SEIU Local 503.

Climate action, workers' rights, and economic sustainability are interconnected. As communities face the dual challenges of environmental change and economic instability, we can help our colleagues and community members understand how these issues intersect and amplify one another. Discover five ways to frame the conversation around climate justice and financial security.

An inclusive economy is one where everyone can participate and thrive, regardless of background, identity, or socioeconomic status. This vision extends beyond economic growth, encompassing equitable access to resources, opportunities, and decision-making processes. Building an inclusive economy prepares not only companies but workers and families to adapt to the challenges of climate change which is essential for achieving climate justice. 

Youth activism continues to influence the movement for workers' rights, equity in labor laws, and union support. With 88% of people under 30 viewing unions favorably, Gen Z is emerging as the most pro-union generation. They challenge traditional labor practices and ways of working and advocate for fair wages and stronger worker protections, and by doing so, they have achieved significant union election wins at companies like Starbucks and Amazon.

Climate finance and green finance have emerged as critical components of the global effort to combat climate change and promote environmental stewardship. While related, these concepts have distinct focuses and play significant roles in the transition to a low-carbon economy.

James Fernyhough published ESG, Trump, and the ‘Anti-woke’ Backlash featuring commentary from CFA Executive Director, Mary Cerulli. Please see the excerpt below and click-through to read the full article.

An effective asset allocation strategy is essential for mitigating risk and ensuring long-term financial stability. It can help investors transition from high-risk in their portfolio, such as investments in companies exposed to climate-related vulnerabilities, to more sustainable, resilient investments.

Combating disinformation is crucial in the movement for climate justice because false narratives undermine public understanding, erode trust in scientific consensus, and stall critical policy advancements. Disinformation sows doubt about the reality and systemic risk of climate change, hindering efforts to mobilize communities and enact meaningful solutions.

Climate change is not just an environmental issue but a complex economic challenge affecting both global and local economies. In 2022, climate-related disasters and infrastructure failures resulted in a loss of approximately $313 billion. The impact on workers and their economic security is a critical issue as the wealth gap widens. A recent report reveals that the top 1% has accumulated over 38% of all wealth since the mid-1990s, while the bottom 50% holds only 2%. This disparity is set to drastically increase as low-income workers, who make up the majority of the workforce in high-risk industries, are disproportionately affected by climate change. The threat to workers' economic security is a real and immediate concern that demands urgent action.

Integrating responsible investing principles allows public pensions to safeguard the retirement futures of workers while building a resilient and inclusive economy. Addressing the unique vulnerabilities of the queer community within the context of the climate crisis ensures that no one is left behind in the pursuit of a sustainable future, and advocating for responsible investing and equitable climate policies ensures a world where all individuals, regardless of their identity, have the opportunity to thrive.

This summer season spotlights the reality of the climate crisis and its profound impact on our daily lives. The increasing frequency of extreme weather, wildfires, heatwaves, and floods is a stark reminder of the dangers we face in our homes, at work, and in our communities. These events are not just distant threats– they currently impact workers across various industries - from utilities to consumer goods, retail workers, and finance professionals.