Pension schemes should be supported for moving people’s money out of fossil fuels and into renewables because the financial risks from the climate crisis are “too important to ignore”, a government minister will say on Monday.

The pensions minister, Guy Opperman, is due to tell a conference that pension and investment managers must “do the right thing” and take their environmental and social responsibilities seriously to help combat the climate emergency.

During the last few years a number of pension schemes have taken action to protect their members from the risks associated with climate breakdown by reducing their exposure to companies with reserves of coal, oil and gas.

Some have pulled all of their funds out of these companies, while others have chosen to apply a positive “tilt” that increases support for businesses identified as vital to combating the climate crisis, such as those working on renewable energy, while at the same time reducing investment in firms that are heavy carbon emitters, have fossil fuel reserves or are not making the sorts of changes needed to meet emission reduction targets.

In April, the Guardian revealed that parliament’s pension fund trustees were to reconsider the rules of their investments to take account of the risks posed by the climate emergency.

Meanwhile, rules taking effect in October will require UK pension fund trustees to set out how they take account of “financially material considerations, including … climate change”.

Ministers have previously stated that it was government policy not to direct the investment decisions or strategies of pension scheme trustees.

However, Opperman is due to tell an Association of British Insurers conference on long-term saving: “The financial risks from climate change are too important to ignore.”

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He will also say: “Many pension schemes are doing the right thing by tilting portfolios towards renewables or away from fossil fuels and by engaging much more forcefully with investment firms who fail to take environmental and social issues seriously.”

The minister will welcome the “excellent work” done by many schemes in this area but will underline more can be achieved: “Pension schemes can identify investment opportunities which will make market-beating returns for members as we move to a low-carbon economy.

“They ought to be thinking about the assets which help drive new investment in important sectors of the economy: smaller and medium firms, housing, green energy projects and other infrastructure which deliver the sustainable employment, communities and environments which all of us wish to enjoy.”