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.

Are you wondering what climate risk really looks like and how pension decisions actually contribute to securing a dignified retirement for workers? Keep reading to see how we decode a few of the most crucial but wonky policy solutions a pension can take to tackle climate risk regarding what that means for protecting public workers' retirement future. We hope this is a helpful explainer tool for trustees on a board, fund staff communicating with the public, or union leaders engaging in pension policies to protect their members' retirement security.

It’s not a huge stretch to say that asset managers dominate us all. As financial firms that invest money for clients in stocks, bonds, and other assets, asset managers’ priority is accumulating wealth for their clients. With trillions of dollars under management and major influence within the highest levels of government, these firms hold outsized economic and political power.

Asset managers—especially megafirms like BlackRock and Vanguard—have become key shareholders of thousands of companies, collectively driving rising inequality and a range of injustices. Because of this, asset managers have increasingly become the focus of critique and organizing over the past decade.

Public pension funds should ensure that investment strategies address emerging global risks like climate change because workers' livelihoods and retirement security depend on it. The path forward demands we counter misinformation and actively advocate for policies that recognize the interconnection between our economic systems, the climate crisis, and the well-being of workers and their families.

In the context of racial and climate justice, intersectionality reveals how race, economic status, and environmental factors negatively impact historically excluded groups. Our economies' resilience, environmental health, and communal well-being are undeniably linked. Considering intersectionality is essential for a comprehensive approach to a just transition to a low-carbon economy where everyone benefits.

During "shareholder season," a myriad of proposals or resolutions are presented. Investors engage with corporate leaders to encourage policy adoptions without resorting to a vote during the AGM. Regarding climate risk, numerous groups and shareholder campaigns are gearing up for specific resolutions and director votes to push companies to act on climate change.

We see economic opportunities in tackling the climate crisis, investments that protect workers' retirement future and safer workplaces, real accountability for harmful companies, and a more just economy that serves the people and the planet.

While the big U.S. asset managers voting records in support of ESG issues have historically lagged European and smaller managers, the exodus of State Street, JPMorgan, PIMCO, and BlackRock’s U.S. operations from Climate Action 100+ (CA100+) could undermine your pensions’ climate risk mitigation policies.