Asset managers in Scandinavia are leading the world in ditching investments that contain climate risk.

Swedish institutions are the top ranked with Norway in second place and Denmark fifth, according to Asset Owners Disclosure Project’s Global Climate 500 index.

“Climate change risk is now a mainstream financial issue and asset owners in Scandinavia are leading the world in action to safeguard their investments,” AODP Chief Executive Officer Julian Poulter said in a statement.

A non-profit organization, AODP ranks the 500 biggest investors in the world overseeing $38 trillion of assets, to measure who’s best at managing climate risk in their portfolios.

Two Swedish pension funds, Fjarde AP-fonden and Andra AP-fonden, and one Danish, Pensionskassernes Administration A/S, were among twelve investors rated AAA by the organization. Norway’s sovereign wealth fund, the world’s largest, was rated BBB.

While 97 of the 500 investors are taking some action to mitigate climate risk, earning them at least a C rating, 246 funds received an X rating to show a lack of measures. They included the Abu Dhabi Investment Authority, Japan Post Insurance and Chinese wealth fund SAFE Investment Company.

“It’s shocking that nearly half the world’s biggest investors are doing nothing at all to mitigate climate risk,” Poulter said. “Pension funds and insurers that ignore climate change are gambling with the savings and financial security of hundreds of millions of people around the world and risking another financial crisis.”

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