The Environmental Audit Committee asked the UK's 25 largest pension funds whether climate change risk was incorporated into their investment decision-making.
The study showed that large funds including BP Pension Fund, Aviva Staff Pension Fund and Lloyds Bank Pension Scheme had not formally considered climate change as a strategic risk.
The Bank of England has warned that investments can be affected by climate change in a number of ways. Physical impacts such as flooding can pose economic risks to businesses and investments, while firms like BP and Shell can face liability trouble when communities recover damage in the wake of flooding.
Mary Creagh, chair of the Environmental Audit Committee, said:
It is encouraging that a majority of the UK’s largest pension funds say they are taking steps to manage the risks that climate change poses to UK pension investments.
But a minority of funds appear worryingly complacent. Pension funds should at least assess the exposure of their assets to the physical, transition and liability risks from climate change that will materialise during savers’ lifetimes.