ABSTRACT
In the 2006 film documentary, 'An Inconvenient Truth', Al Gore sets out in stark terms the global crisis presented by climate change. The pension sector's response to climate change is disappointingly slow and inconsistent, especially in light of the long-term horizons of this industry. One frequently given reason for this is the alleged barrier posed by fiduciary duty. One of the most significant and most urgent environmental issues facing the modern world is climate change. Climate change has therefore moved from being a niche topic to being a topic for serious consideration in economic debate and policy. The Law Commission found that, far from being a barrier, trustees' fiduciary duties require them to take account of financially material factors or risks. Possible reasons worth exploring are: trustees lack the understanding to do so; trustees lack the capacity to do so; and trustees lack the incentive to do so.
