Pension fund trustees are most likely to face fiduciary legal risks related to:

Climate change (Option A) is a material financial risk that pension fund trustees must consider under their fiduciary duty. Failing to assess climate risks can lead to:

Legal liabilities and lawsuits from beneficiaries.

Financial losses due to stranded assets and regulatory shifts.

Option B (Choice of benchmarks) is relevant, but not the primary fiduciary risk.

Option C (Lack of ESG signals) affects engagement but does not constitute a direct legal risk.