The Department of Work and Pensions (DWP) recently consulted on the introduction of new duties that will require pension scheme trustees to have in place effective governance, strategy, risk management and accompanying metrics and targets to assess and manage climate risks and opportunities in their schemes.
It is also proposed that trustees will need to make public disclosures about the steps they are taking to assess and manage climate-related risks and opportunities in line with the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD).
It is envisaged that the new requirements would first apply to the largest schemes with assets in excess of £5billion (and authorised master trusts) from 1 October 2021, with first public disclosures to be made by the end of 2022. Schemes with assets of £1billion or more would become subject to the requirements a year later, with scope to a consider an extension to smaller schemes from 2024.
You can read our response to DWP's consultation below.