"Climate change is a huge risk not only to the environment but also to superannuation, say industry players.

Carbon dioxide (Co2) and its role in climate change have not been more topical, nor more alarming.

Catholic Super chief investment officer Tim Hughes said climate change was the 'biggest long-term risk we face', but also presents great possibilities to capture opportunities.

Firms want to see a price put on carbon to mitigate some of the risks they are taking.

'Climate change is a huge risk to the superannuation industry,' Mr Hughes said at a climate change forum in Sydney.

He said there were weather-related risks such as increasing cyclone or hail storms that could affect business productivity.

And as most super funds had a large proportion of their savings invested in Australian and international companies, the returns of fund members were linked directly to the long-term financial performance of those investments.

Another major risk was that the government was likely to impose limits the amount of greenhouse gases companies were allowed to emit.

Companies that exceed these limits may pay penalties that could affect their bottom line.

These types of risks also posed a threat to superannuation because they could affect a company's company's long-term profitability and, therefore, its share price, which, in turn, had an affect on fund members' returns." Climate change a 'huge risk' to super - Business - Business - smh.com.au:

Perhaps a little bit of investment in carbon credits might balance your portfolio?!? I think some long term consideration to a company's environmental and corporate social responsibility will be very important in the future.

AMP's Dr Woods said there was already a significant market for carbon trading, with 374 million tonnes of Co2 traded in 2005 under the Kyoto Protocol, which was about two-thirds of Australia's annual greenhouse emissions.

"Institutional investors have a unique view on climate change as we are exposed to all aspects of climate change," he said.

Its important this old climate thing because there will BE no investments without the actual climate itself!