Workers and pension trustees should and can have a stronger voice in the kind of future their retirement savings fund.
Investing in Our Future:
A Guide for Climate-Conscious Pension Strategies
The climate crisis is affecting our lives, from wildfires and heat waves to flooding and extreme weather. That includes the danger to safety in our workplaces and local communities and the economic risk to secure jobs and retirement futures. But there is one very powerful tool that workers, union leaders, and pension trustees can more effectively wield to tackle these harms– and that is your pension. This guide is one of many offerings from CFA with a mission to demystify the finance system as a powerful arena for change-making – and help leaders among workers, pension trustees, and allied stakeholders see and exercise their power in it.
We encourage you to engage with and share Investing in Our Future with your network as a resource. Please credit CFA when sharing to support our work and help us to create more resources for stakeholders and decision-makers in the future.
What the Guide Offers:
A digestible breakdown of the pension finance system, its players, and how change happens within these systems.
Clarifying examples of real-world policy solutions and pathways that some state pensions have taken to better tackle the climate crisis’ risk to their workplaces, communities, and financial security– along with practical guidance for you to explore those possibilities in your state.
Organizing tutorials and hands-on worksheets for workers, advocates and trustees to – (1) Help find and pursue policy improvements that work for their state system and labor community and (2) Design and implement engagement efforts that build power for positive change.
Case studies throughout the country to showcase what success can look like and to learn from celebrating their progress.
-
Offers a roadmap to climate finance space, roles, and decision points where you can make a difference. Includes:
“Say What” Glossary – translating key technical finance terms into actionable concepts
“Who’s Who” of the Pension Finance World
A Menu for Change: 10 policy paths that pensions can take to tackle climate risk
“Save the Date” - A Timeline on Pension Policies
Download Addendum:
-
Walks through the ways a pension can exercise its voice to drive positive action or curb problematic practices of the companies in its portfolio. This section will cover how strong shareholder power can drive a pension fund’s ability to address climate risk and hold companies accountable. Get access to sample proxy guidelines from different states on director votes, company disclosure and transition plan, and lobbying.
-
Covers investment policies and practices that equip the pension system to better manage and protect itself from climate risk as financial risk to its fund, as well as benefit from “greener” economic opportunity. Includes:
Examples of what to include in an investment beliefs statements
Key criteria for an effective and accurate portfolio risk review
Download Addendum:
-
Guidance on how to identify and respond to disinformation and strategic questions to help craft a counter-narrative
-
Guidance and hands-on tools for the following strategy & organizing support:
For trustees: 10 Questions to power- and relationship-map your board and key influencers; and 5 steps to find allies
For local public unions: Power-mapping your pension system to your union’s leaders and members
For both: “Strengths, Weaknesses, Opportunities, Threats (SWOT)” analysis to explore pathways for pension policy change
For both: Building a story that builds power
Download Addendum:
-
A sample of informative and practical resources on the realms of finance, pensions, and climate change to help your continued learning and engagement
‘Say What?!’ Glossary
(Expanded November 2024)
The transition to a climate-resilient economy requires a clear understanding of the terms and concepts shaping climate-conscious investment strategies. This glossary demystifies key concepts to empower pension fund stakeholders with the knowledge and language needed to navigate the complex intersection of systemic climate risk, fiduciary duty, and financial resilience to support informed decision-making and strengthen collective efforts to mitigate climate risk while advancing inclusive, equitable economic outcomes. Download.
Explore the Guide
-
Demystifying the Pension Finance System
Pension systems can be hard to navigate and inaccessible – even to those who have a direct stake in its decisions and thus should have a say. Explore our roadmap to the climate finance space, roles, and decision points.
Download Section One Worksheets
Download Addendum: (1)Checklist for Policy Implementation and Accountability, (2)Climate Risk and Fiduciary Duty
-
Know Your Shareholder Power
With more than $6.5 trillion in investments, U.S. public pension systems own a hefty amount of shares in companies. Those shares mean votes– and a powerful opportunity to harness the power of pension dollars to impact corporate behavior on climate change.
-
The Power of Investment Decisions
Despite knowing that climate risk will reap huge consequences if not addressed, investors continue to avoid accounting for climate-related financial risks-- let alone trying to mitigate it. Discover tools for driving real solutions to climate and economic challenges.
Download Section Three Worksheets
Download Addendum: (1) Opportunities for Climate Solutions Investments with a Just Transition Lens, (2) Committees that Build Stewardship Capacity, (3) How to Strengthen a Fund’s Strategic Asset Allocation
-
Organizing to Build Power
This section offers four practical guides for the most commonly requested topics for strategy and organizing to help get started in your engagement. See our sample questions, research guidance, and worksheets.
Download Addendum: (1) Organizing Worksheet: Organizing Worksheet- Checklist For Effective Tactics, (2) Engagement Opportunities for Beneficiaries
-
Tips for Combating Disinformation
We can better avoid the pitfalls intentionally set by disinformation dealers once we understand that the goal of disinformation campaigns around responsible investing is not to win a credible argument-- but rather to distract.
-
Additional Resources
There is a wealth of informative and practical resources on the realms of finance, pensions, and climate change. Discover resources that may be helpful for your continued learning and engagement.
Your feedback is valuable.
Thank you for exploring "Investing in Our Future: A Guide for Climate-Conscious Pension Strategies." Your engagement is vital to our journey towards sustainable climate finance action. When sharing insights from the guide, please credit Climate Finance Action. This not only supports our work but also expands our reach.
Your feedback is valuable to us; please fill out our feedback form to help us refine and create more impactful materials. Your input supports us in developing resources that equip stakeholders to create change.