Purpose Framed within global policy debates over the need for private financial flows to align with the capital requirements of the Paris Agreement, this paper examines UK asset managers in their approaches to disclosing and managing climate risk. This paper identifies and evaluates climate risk management practices among this under-researched investor group in their capacity to address fundamental behavioural obstacles to low-carbon investment. Design/methodology/approach This paper takes an inductive approach to document analysis, applying content and thematic analysis to the annual disclosures of the 28 largest UK asset managers (by assets under management), including the investment management arms of insurance and pension companies. Findings The main takeaway from this research is that today’s climate risk management strategies hold potential to effectively address traditionally climate risk-averse investor behaviour and investment processes in the UK asset management context. However, this research finds that the use of environmental, social and governance (ESG) investment strategies to mitigate climate risks is a “grey area” in which climate risk management practices are undefined within broad sustainability and responsible investment agendas. In doing so, this paper invites further research into the extent to which climate risks are considered in ESG investment. Originality/value This paper contributes to research in sustainable finance and behavioural finance, by identifying the latest climate risk management techniques used among UK-headquartered asset managers and uniquely evaluating these in their capacity to address barriers to low-carbon investment arising from organisational behaviours and processes.

The paper contributes towards filling a 'blind spot' in the field of climate finance by investigating the role of climate finance for behavioural insights in developing countries.The evidence review synthesises 71 high-quality studies and focuses on clean fuel adoption and household energysaving behaviour in developing countries. The synthesis finds that there is a need for climate finance from developed countries that is more targeted towards interventions and measures that support household decision-making in developing countries by engaging with stakeholders that understand local attitudes, constraints and knowledge levels governing the perception of health and environmental risks associated with energy-consuming technologies.