This is seen as the first line of defence and involves a technical asset-by-asset review of the portfolio to assess asset-specific climate change risks and options to build resilience. These reviews go beyond basic carbon foot-printing to assessing exposures to plausible climatic events, supply chains, policy or technological change and public activism. The reviews are conducted by First State Super in collaboration with its asset managers and advisors over a two-year cycle. A key part of First State Super’s ESG Policy is proactive engagement with senior executives and boards of the companies we hold, even where our percentage of share-holdings is small, e.g. listed shares. Moreover, when many pension funds divest en masse, this can increase the cost of capital for new projects, and may have real signalling effects that change corporate attitudes. First State Super has prepared this paper to share with other investors how we are thinking about climate change and how we are responding to the very significant and multi-dimensional risks climate change presents. We firmly believe that large institutional investors not only have a fiduciary responsibility to manage these risks, but through shared insights and action, can actually support more sustainable returns to portfolios over time.