23 Sep 2014

Super fund to look at climate risks

1:31 pm on 23 September 2014

The New Zealand Superannuation Fund is backing a global investment study to better assess the risks and and opportunities associated with climate change.

The British-based, global investment consulting firm, Mercer, is analysing the investment risks and returns under various climate change scenarios, with the support of global fund managers, including the New Zealand fund.

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With total assets under management of $US1.5 trillion the group wants to better understand the scientific and policy issues around climate change and how they will impact investment decision-making now and in the future.

The New Zealand fund, which was set up to make investments to help pay for New Zealanders' future superannuation entitlements, was valued at $26.8 billion at the end of August.

Super Fund chief executive, Adrian Orr, said the Mercer project will help it plan its investment strategies.

He said that, as an inter-generational investor, the fund needs to understand the investment risks and opportunities associated with climate change.

The results of the study are expected to be published early next year.