The Responsibility of Investing

In this episode, Nathan Fabian, Chief Sustainable Systems Officer at the PRI, examines what happens to the world’s ageing, high-emitting infrastructure—and why the way we decommission these assets is central to a just and orderly transition. He is joined by Julien Halfon, Head of Corporate and Pensions Solutions at BNP Paribas Asset Management, whose team estimates there are at least US$7.5 trillion in unfunded decommissioning costs embedded in today’s energy and industrial systems. Together, they explore how responsible investors can move from walking away from “brown” assets to actively stewarding them through end of life, clean-up and repurposing.OverviewThe conversation begins with Julien outlining the research behind the US $7.5–8 trillion decommissioning liability estimate, drawing on global studies from regulators, multilateral institutions and sectoral assessments. He explains how decommissioning liabilities emerged from the nuclear sector and is now a critical but underfunded obligation across oil and gas, mining, coal power and even renewables. Only a small fraction—mainly in nuclear—has been pre-funded, leaving governments, taxpayers and future generations exposed.Nathan and Julien then unpack why responsible investors cannot simply divest from polluting assets and “leave the mess behind”. In a diversified portfolio, the costs of unmanaged decommissioning, stranded infrastructure and damaged communities reverberate across the wider economy. The discussion reframes decommissioning as part of long-term stewardship: engaging through the full lifecycle of assets, recognising decommissioning as a real liability, and using innovative instruments such as transition and decommissioning bonds to convert environmental debts into investable, long-term solutions.Detailed CoverageThe decommissioning gapJulien explains BNP Paribas Asset Management’s estimate of roughly US$8 trillion in decommissioning liabilities, of which around US$7.5 trillion remains unfunded once existing nuclear reserves are stripped out. Current corporate provisions fall far short of this figure, leaving a significant hidden risk.Why end-of-life stewardship mattersUsing examples such as abandoned copper mines, he illustrates how poorly managed closures can leave toxic legacies, stranded communities and fiscal burdens for governments—costs that ultimately flow back to diversified investors through sovereign and systemic risk.From cost centre to opportunityThe episode highlights how active stewardship can unlock value from “end-of-life” assets, from re-mining tailings for valuable metals to repurposing industrial hubs, offshore platforms or nuclear sites into data centres, wind farms and other green infrastructure.Financing the transition: decommissioning and transition bondsJulien sets out how decommissioning and transition bonds can pre-fund clean-up and rehabilitation by transforming environmental liabilities into transparent financial ones, while freeing equity capital for redevelopment. Investor appetite has been strong, given the measurable nature of decommissioning activities and the clear brown-to-green trajectory.Policy, pensions and local communities Drawing on defined benefit pension frameworks, the discussion explores how tax-advantaged, ring-fenced decommissioning funds and supportive local development policies can help manage liabilities, protect communities and scale new markets for repurposed assets.Find out more about the PRI’s work on climate and environmental issues at www.unpri.org/responsible-investment/sustainability-issuesChapters 00:43 – Introduction: why decommissioning matters for responsible investors 01:59 – Julien Halfon on the US$7.5 trillion decommissioning gap 04:31 – Why investors can’t simply divest from “brown” assets 06:43 – Stewardship through end of life: staying engaged with legacy assets 07:51 – From liability to opportunity: repurposing mines, nuclear sites and hubs 11:23 – Transition and decommissioning bonds: funding clean-up and redevelopment 14:45 – Early issuances and investor appetite for decommissioning bonds 17:30 – Risks from short-termism, asset transfers and weak disclosure 23:14 – Real-world examples of repurposing and urban transformation 24:30 – The looming crunch: decommissioning fossil and ageing renewables together 28:40 – What policy and tax frameworks are needed to support decommissioning? 30:18 – Local communities, pension lessons and the North Sea opportunity 33:15 – Signposts for progress and scaling decommissioning markets 37:51 – The responsibility of investing: intergenerational stewardship and systems changeDisclaimer This podcast and material referenced herein is provided for information only. It is not intended to be investment, legal, tax or other advice, nor is it intended to be relied upon in making an investment or other decision. PRI Association is not responsible for any decision made or action taken based on information on this podcast. Listeners retain sole discretion over whether and how to use the information contained herein. PRI Association is not responsible for and does not endorse third parties featured on in this podcast or any third-party comments, content or other resources that may be included or referenced herein. Unless otherwise stated, podcast content does not necessarily represent the views of signatories to the Principles for Responsible Investment. All information is provided “as is” with no guarantee of completeness, accuracy or timeliness, or of the results obtained from the use of this information, and without warranty of any kind, expressed or implied. PRI Association is committed to compliance with all applicable laws. Copyright © PRI Association 2025. All rights reserved. This content may not be reproduced, or used for any other purpose, without the prior written consent of PRI Association.

Extreme weather events are reshaping the investment landscape. How can investors protect portfolios—and communities—from the rising physical risks of climate change? In this episode, Kate Webber, Chief Solutions and Technology Officer at the PRI, speaks with Dr Calvin Lee Kwan of Link Asset Management and Simon Whistler, PRI’s Head of Real Assets, to explore how investors can turn climate resilience into both risk management and value creation.Overview Physical climate risk is no longer theoretical—it’s here. Floods, fires, and black-rain events are increasing in frequency and intensity, with real financial consequences. Simon Whistler outlines how investors are beginning to quantify and address these risks, yet highlights that fewer than one-third of PRI signatories currently report on physical climate risk metrics. Calvin Lee Kwan shares how Link Asset Management has moved from reactive recovery to proactive resilience—reducing insurance premiums by 11.7% and strengthening investor confidence in the process.Detailed CoveragePhysical climate risk today: More frequent and severe events—from typhoons in Hong Kong to floods in Europe—are causing major financial and operational losses.Investor action gap: Only 29% of investors report on physical climate risk, compared with 50% in the real-assets space, showing the need for broader engagement.Value protection and creation: Link’s sustainability strategy is built on two pillars—protecting existing value through resilience and creating new value through efficiency and stakeholder alignment.From risk to return: Engaging insurers with clear, data-driven resilience metrics translated into measurable financial results, proving sustainability can deliver bottom-line benefits.Community resilience: Floodwaters don’t stop at property boundaries. Link’s team now collaborates with neighbors, local authorities, and infrastructure managers to build district-level resilience—an approach that benefits whole communities.Industry-wide change: Collaboration between investors, insurers, and policymakers is key to building consistent models, pricing resilience into valuations, and driving systemic adaptation.Communication as a catalyst: For Calvin Lee Kwan, sustainability comes down to translating resilience into stakeholder-specific value—from stable returns for investors to safety and reliability for tenants.Chapters00:43 – Welcome and introductions02:08 – Why investors must act on physical climate risk05:07 – How far investors have come—and how far to go07:23 – The cost versus opportunity debate08:43 – Link Asset Management’s practical approach11:48 – A watershed moment: floods and recovery13:34 – Turning resilience into measurable value15:23 – Black-rain events and extreme weather16:59 – Challenges for other investors20:23 – Partnering with insurers to price resilience25:00 – From property-level to community-level resilience27:28 – How resilience links to property valuation30:50 – Final reflections: communication, focus, and leadership32:44 – What is the responsibility of investingFor more details, visit: https://www.unpri.org/climate-change-for-private-markets/assessing-physical-climate-risk-in-private-markets-a-technical-guide/13135.articleKeywords responsible investment, physical climate risk, resilience investing, PRI podcast, Link Asset Management, insurance and sustainability, real assets, climate adaptation, community resilience, property valuation, ESG integration, value creation, decarbonisation, stakeholder alignment, risk management, sustainable finance, investor communicationDisclaimer This podcast and material referenced herein is provided for information only. It is not intended to be investment, legal, tax or other advice, nor is it intended to be relied upon in making an investment or other decision. PRI Association is not responsible for any decision made or action taken based on information on this podcast. Listeners retain sole discretion over whether and how to use the information contained herein. PRI Association is not responsible for and does not endorse third parties featured on in this podcast or any third-party comments, content or other resources that may be included or referenced herein. Unless otherwise stated, podcast content does not necessarily represent the views of signatories to the Principles for Responsible Investment. All information is provided “as is” with no guarantee of completeness, accuracy or timeliness, or of the results obtained from the use of this information, and without warranty of any kind, expressed or implied. PRI Association is committed to compliance with all applicable laws. Copyright © PRI Association 2025. All rights reserved. This content may not be reproduced, or used for any other purpose, without the prior written consent of PRI Association.

A decade on from the Paris Agreement, COP30 in Brazil is shaping up to be the implementation COP. For investors, this means not only understanding the risks of inaction but also seizing the opportunities that climate and nature-based solutions present. In this episode, Tamsin Ballard, Chief Initiatives Officer at the PRI, speaks with Wendy Walford, Head of Climate and Nature Risk at Legal & General and Policy Track co-lead for the Net Zero Asset Owner Alliance, about why institutional investors are engaging in the UN climate negotiations and what they hope to achieve Wendy Walford explains how Legal & General integrates climate and nature considerations into decision-making and why COP30 represents a pivotal moment. She highlights the role of private finance in achieving the Baku to Belém Roadmap commitment of mobilising $1.3 trillion for emerging and developing economies. The conversation explores why investors must be at the table, how alliances can amplify their voice, and why policy stability is the linchpin to unlock large-scale capital flows.Detailed coverageWhy COP30 matters to investors: Climate is a systemic risk that directly affects portfolios. Investors need to understand policy outcomes to align long-term allocations.The $1.3 trillion roadmap: COP29 in Baku highlighted the necessity of private finance in scaling investment into emerging markets. COP30 will test how barriers to this ambition can be addressed.Opportunities and risks: Mobilising finance offers huge upside in renewable energy, adaptation, and nature-based solutions, but investors also face volatility: FX risk, and limited data.Investor expectations for COP30: Calls for stable, long-term policy environments, signals to boost confidence, and frameworks to unlock investable opportunities in climate and nature.Nature-based solutions: From sovereign debt-for-nature swaps to carbon markets, innovative instruments are emerging but require multistakeholder cooperation and supportive regulation.Amplifying investor voices: Alliances like the Net Zero Asset Owner Alliance provide a collective voice that ensures investor needs are heard in negotiations.The responsibility of investing: Long-termism is essential — balancing short-term returns with the duty to build resilient, sustainable portfolios for future beneficiaries.Chapters00:43 – Why COP30 matters to investors02:19 – Legal & General’s role and the Net Zero Asset Owner Alliance05:23 – Why engage with UN climate negotiations?06:04 – The Baku to Belém Roadmap and $1.3 trillion finance goal08:44 – Barriers and risks in emerging markets11:06 – Opportunities vs. resilience in climate investing14:37 – Key asks for COP30 outcomes15:57 – Nature-based solutions and innovative financing18:18 – Investor expectations for government action20:10 – Practical advice for engaging with the COP process23:49 – What is the responsibility of investing?Read more about the PRI’s Road to COP30 programme and buy your tickets to PRI in Person at https://www.unpri.org/sustainability-issues/climate-change/the-road-to-cop30Find out more about the NZAOA at https://www.unepfi.org/net-zero-alliance/Keywords responsible investment, COP30 Brazil, PRI podcast, Legal & General, Net Zero Asset Owner Alliance, climate finance, systemic risk, Paris Agreement, Baku to Belém Roadmap, emerging markets investment, sustainable investing, adaptation finance, nature-based solutions, sovereign debt-for-nature swaps, carbon markets, fiduciary duty, investor policy engagement, long-term portfolio resilience, ESG integrationRisk Disclaimer Your capital is at risk. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is not an indicator of future results.Disclaimer This podcast is provided for educational and informational purposes only. It is not investment advice, financial planning guidance, or a recommendation to buy, sell, or hold securities. All discussions are for educational purposes only.

With just weeks to go until COP30 in Belém, Brazil, the world’s attention is turning to how global climate commitments can move from promise to practice. Investors are central to this shift — from financing the transition to engaging with policymakers - all of which we’ll be discussing at PRI in Person in São Paulo, just days before COP30 kicks off. In this episode, Tamsin Ballard, Chief Investor Initiatives Officer at the PRI, speaks to Ana Toni, CEO of COP30, about the critical role of the investment community in shaping outcomes at this year’s UN Climate Conference.OverviewCOP30 marks a pivotal moment: the first time all elements of the Paris Agreement’s “full cycle” come into play. Countries must submit their decarbonisation and adaptation plans through to 2035, setting the framework that will guide both public and private capital flows. Against the backdrop of worsening climate impacts — and all this as the Amazon rainforest hosts — the stakes for implementation have never been higher.Ana Toni outlines her three cross-cutting priorities for COP30:Protecting the multilateral system to ensure global cooperation.Connecting global negotiations to everyday realities of consumption, financing, and business.Accelerating implementation — shifting from frameworks to real-world action.Detailed CoverageWhy COPs matter: From the Paris Agreement to carbon market reforms, COP outcomes shape financial systems, consumer choices, and long-term investor strategies.Decade after Paris: Governments now must present their 2035 climate plans, providing clarity and certainty for private sector investment.The finance dimension: COP30 will build on COP29’s focus on climate finance, aiming to mobilise far greater flows of capital — especially to developing countries.Risks and opportunities for investors: Climate change presents both physical and financial risks, but also growth opportunities in renewable energy, agriculture, sustainable infrastructure, and emerging markets.Investor engagement: COP30 is positioned as a platform for matchmaking — connecting regulators, private sector innovators, and financiers to accelerate solutions in areas like SAF, green hydrogen, and agriculture.From promise to practice: Both PRI in Person (São Paulo) and COP30 (Belém) are highlighted as forums where investors can move beyond commitments into specific, scalable solutions.Chapters00:43 – Setting the stage: COP30 and investor relevance02:31 – Role of the COP30 CEO and the negotiation process04:09 – Why COP decisions affect finance and daily life06:37 – Priorities and hopes for COP3010:17 – 2035 plans and Paris Agreement “full cycle”12:51 – Risks and opportunities for investors16:54 – Practical ways investors can engage with COP3019:14 – PRI in Person as a platform for dialogue22:27 – The responsibility of investing: acting now for the long termFor more information on PRI in person, or its plans for COP30, please visit the following links:PRI in Person 2025 - 4-6 NovemberThe Road to COP30KeywordsCOP30, UN Climate Conference Brazil, PRI podcast, responsible investment, climate finance, Paris Agreement, 2035 climate plans, sustainable investing, implementation, investors and COP, green hydrogen, SAF, just transition, climate risk management, emerging markets, biodiversity finance, systemic risk, long-term investment strategies, sustainable agriculture, energy transition

How does a leading investment fund fully integrate stewardship and sustainability into its strategy?In this episode of The Responsibility of Investing, Cambria Allen-Ratzlaff, Chief Responsible Investment Ecosystems Officer at the PRI, is joined by Jonathan Grabel, Chief Investment Officer for the Los Angeles County Employees Retirement Association (LACERA). They discuss how LACERA incorporates responsible investment principles across all asset classes, driven by a strong fiduciary duty to its beneficiaries.Jonathan shares insights into LACERA’s governance structure, investment beliefs, and the operational integration of stewardship and the TIDE (Towards Inclusion, Diversity & Equity) programme. The conversation explores the role of data, proxy voting, and climate scenario analysis in managing risk and generating durable, risk-adjusted returns. Listeners will gain a clear understanding of how sustainability is embedded at every level of LACERA’s investment process to protect and grow assets for current and future retirees.Visit the PRI website: https://www.unpri.org/

How is AI revolutionising the way we approach responsible investing? In this episode, Paul Van Eynde, Chief Marketing & Strategy Officer at the PRI is joined by Lorenzo Saa, Chief Sustainability Officer at Clarity AI, to explore how technological innovation is reshaping the investment landscape. Lorenzo shares his journey from microfinance to becoming a front-runner in sustainable investments, offering insights into the transition from traditional analyst-driven models to pioneering data and technology-driven solutions at Clarity AI. Hear how AI can be used as a collaborative tool to enhance understanding of sustainability issues and opening new avenues for improved investment outcomes, particularly in emerging markets, leveraging alternative data sets and using AI for environmental monitoring. Focusing on the interplay between human and artificial intelligence in the investment realm, Lorenzo explains that AI tools not only enhance productivity but also offer deeper insights, likening AI’s capabilities to those of a cheetah for speed and an owl for wisdom. As we routinely increase the adoption of these technologies, Lorenzo advocates for a proactive approach to integrating AI into responsible investing, while ensuring transparency and aligning with client expectations.

In the inaugural episode of the relaunched The Responsibility of Investing podcast Paul Van Eynde, Chief Marketing & Strategy Officer at the PRI chats with José Pugas, Partner & Chief Sustainability Officer at Regia Capital about the upcoming COP30 in Belem, Brazil in November 2025 to explore the critical intersection of finance and environmental responsibility . José shares the pivotal role of nature in investment strategies and offers invaluable insights into Regia Capital’s establishment as a joint venture between Brazilian giants JGP Asset Management and Banco do Brasil Asset Management, highlighting their pioneering role in green finance within Brazil's ecological transition framework.With a focus on Brazil, explore the challenges and opportunities associated with nature-based solutions. José highlights the importance of collaborating with experts outside the financial sector and emphasizes the potential for global investors to support emerging markets in their transition to low-carbon economies. This underscores the need to move beyond traditional approaches and embrace a broader understanding of investment opportunities linked to nature and sustainability.Join us in São Paulo from November 4–6, 2025, for PRI in Person, our annual flagship global conference on responsible investment, strategically timed just before the COP30 in Belem. As a gathering of over 1,000 institutional investors, policymakers, corporates, and sustainable finance leaders, this event is a powerhouse of collaboration and innovation on critical responsible investment issues.Taking place in Brazil, the heart of immense biodiversity and green finance opportunities, PRI in Person will drive impactful connections to mobilise capital for emerging markets and tackle urgent climate and nature challenges. With COP30 as a pivotal moment for nations to enhance their climate commitments, the conference ensures strategic alignment for ambitious investments that align with a net-zero, sustainable future. DisclaimerThis podcast and material referenced herein is provided for information only. It is not intended to be investment, legal, tax or other advice, nor is it intended to be relied upon in making an investment or other decision. PRI Association is not responsible for any decision made or action taken based on information on this podcast. Listeners retain sole discretion over whether and how to use the information contained herein. PRI Association is not responsible for and does not endorse third parties featured on in this podcast or any third party comments, content or other resources that may be included or referenced herein. Unless otherwise stated, podcast content does not necessarily represent the views of signatories to the Principles for Responsible Investment. All information is provided “as-is” with no guarantee of completeness, accuracy or timeliness, or of the results obtained from the use of this information, and without warranty of any kind, expressed or implied. PRI Association is committed to compliance with all applicable laws. Copyright © PRI Association 2025. All rights reserved. This content may not be reproduced, or used for any other purpose, without the prior written consent of PRI Association.