Research
Investing in resilience: unlocking pension capital for climate adaptation
New research from Cushon and the University or Exeter says pension funds need to invest in climate adaptation, as well as decarbonisation.
Published on 2nd November 2026
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3 min read
Cushon and the University of Exeter have co-authored a white paper that calls for four improvements to help establish deeper UK climate resilience in private market investments, urging the pensions industry to put climate adaptation on the productive finance agenda.
The launch of the paper, Investing in Resilience: Unlocking Pension Capital for Climate Adaptation, follows the first reporting figures from the Mansion House Accord. There was £22.1bn of DC growth-phase assets in private markets at 31 December 2025. Of that, £11.1bn was invested in the UK, with a further £3bn of UK deals committed but not yet deployed.
However, to convert that momentum into a deeper market for UK resilience that is suitable for DC pension funds to invest in, the paper calls for four improvements:
decision-useful data on physical climate risks, including extreme events and tipping points;
a pipeline of adaptation projects that can meet DC requirements on scale, governance and value;
clearer government guidance and incentives to crowd in private capital, and
closer coordination between government, public finance institutions, schemes and asset managers.
A stronger pipeline would give trustees more credible options within their fiduciary duties. It would also address the barriers highlighted in the Mansion House Accord’s first progress report: investable supply, regulatory friction and the need to focus on value.
The message to the market is simple: adaptation can help the Mansion House Accord deliver on its promise to provide productive investment, stronger member outcomes and a more resilient UK economy.
The analysis in the paper suggests that, in addition to mitigation investments, the UK needs to prepare for increased impacts from climate hazards and invest in climate adaptation to reduce the potential risks.
In June 2025, Cushon agreed to an investment in natural capital in its Sustainable Investment Strategy, committing to a 2% allocation to the Aviva Investors Carbon Removal Fund.
As a Mansion House Accord signatory, Cushon is committed to turning intent into investable allocations. Providers already have £11.1bn at work in UK private markets, which is a strong start, and the £3bn pipeline shows momentum is building.
The next opportunity is resilience. Funding infrastructure and assets that can cope with a changing climate opens up a long-term value creation for members and for the UK economy.
The investment case is becoming harder to ignore. Physical climate risks are already affecting UK assets, while the pipeline of pension-scale adaptation opportunities remains underdeveloped. It identifies resilient infrastructure, flood and heat protection, nature-based solutions and upgrades to existing assets as areas with potential to deliver durable value.
Martin Logan, Sustainability Manager at Cushon
Pension capital is well suited to long-term challenges, but the market needs clearer data, stronger project pipelines and policy support. The Mansion House Accord creates real momentum; now we should use it to make the UK economy both more productive and more resilient.
Dr Jesse Abrams, Senior Impact Fellow at the University of Exeter
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