Investors are oblivious to the risks environmental issues pose to companies according to a report in today's Financial Times.
The report focuses on a study from environmentalists Forum for the Future, which blames investor ignorance on the absence of environment related information for companies.
But the forum admits it is difficult to present a compelling argument as to why investors should account for environmental issues.
The forum predicts change will only occur if more information is provided to companies detailing the benefits and opportunities environmental issues could offer them.
The forum believe pension funds could have a pivotal role in this development saying: “If pension funds start generating demand for environment-related research and products on a larger scale, fund managers and analysts will follow.”