Loading the DICE against pension funds: Flawed economic thinking on climate has put your pension at risk

This report sets out that many pension funds use investment models that predict global warming of 2 to 4.3°C will have only a minimal impact on member portfolios. It argues that pension funds rely on economists’ flawed estimates of damages from climate change, which predicts that even with 5 to 7°C of global warming, economic growth will continue. The report underscores that such economic studies cannot be reconciled with warnings from climate scientists that global warming on this scale would be “an existential threat to human civilisation.” This report presents itself as a call to action for investment professionals to look at the compelling evidence we see in the climate science literature, and to implement investment strategies, particularly a rapid wind down of the fossil fuel system, based on a ‘no regrets’ precautionary approach.