EU requires pension funds to consider environmental risks

Pension fund managers will have to consider the environmental and social risks involved in their investments under a law rubberstamped by the European Parliament on Thursday.

Workplace pension scheme risk assessments will also have to cover risks related to “stranded assets” created by tightening climate change regulation. The revised law includes a reporting requirement on the practical implementation of the new obligations.

The vote in the Parliament confirms a political agreement with member states on revising a law governing the occupational pensions market. The pension schemes hold assets worth more than €3 trillion on behalf of 75 million Europeans.