This is going to be a big year for climate change, but institutional investors and their advisers are likely to play only a small part — and are running a risk they may be unaware of by doing so. In June the United Nations is holding a massive conference in Brazil, bringing together stakeholders from around the globe to mark the twentieth anniversary of its first United Nations Conference on Environment and Development. Heads of state and top government officials are all expected to attend — as are a handful of institutions.

To be sure, the topic of climate change is factoring into the thinking of more institutional asset owners both globally and in the U.S., and some are starting to take action either in their investment portfolios or through shareholder engagement. But while consideration of environmental concerns in reviewing investments is becoming common for investors in continental Europe, Australia and New Zealand, U.S. institutions, as a group, remain far less engaged; and climate change awareness advocates think they need to wake up. Fast. ....

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