Post by Corporate Governance: An International Review

Accepted Paper: The Role of Governance and Delegation in Climate Change Transparency by European Pension Funds New research by Jesper Lindgaard Christensen, Konstantinos Eleftheriou, and Paul John Marcel Klumpes (from Aalborg University Business School) examines the governance and delegated management factors that incentivize large European pension funds to align their climate reporting with the Task Force for Climate-Related Financial Disclosures (TCFD) guidelines. Using a sample of 50 large European pension fund organizations, the study finds that climate change transparency is associated with internal governance norm factors, particularly the extent of delegation of key investment management and monitoring functions to outside professional organizations, and the governance structure of nonoccupational-based pension funds. The findings also indicate that country and regulatory characteristics influence climate risk transparency. The study highlights the importance of both internal governance norms and external pressures in shaping pension funds' engagement with climate-related transparency. https://lnkd.in/dtr3SVCa #CGIR #CorporateGovernance #AgencyCosts #ClimateChange #PensionFunds #TCFDAlignment