Extreme weather events this summer, including heatwaves and wildfires across Europe and Canada, are highlighting the escalating economic damage of climate change. Experts estimate losses in France alone could reach "hundreds of millions of euros." This raises a critical question: how long can major investors and pension funds ignore these financial risks?

The French asset manager Amundi is demonstrating a focus on sustainability, reporting nearly €43bn in net new assets in its latest quarter, significantly up from the previous year. A recent mandate from the UK endowment Nesta Trust to shift assets from Northern Trust to Amundi underscores this trend. Nesta cited Northern Trust’s withdrawal from industry climate initiatives as incompatible with its mission.

While not as large as previous divestments, this move by Nesta Trust, managing £420mn, signals a direction for some long-term asset managers and pension funds, mirroring actions by Dutch and Danish pension funds. Nesta's chief investment officer, Jenny Segal, stated that asset managers have a duty to ensure investments support climate action to protect portfolio growth, warning that stepping back from these initiatives risks compromising stewardship. Amundi UK chief executive Eric Bramoullé noted that clients continue to seek investments that align with sustainability commitments and financial performance.