UK Pensions – Time to act on climate change

“Climate change is the defining challenge of our time … The time to act is now.” Strong words from Guy Opperman MP, the Minister for Pensions and Financial Inclusion, as he introduced a consultation on new requirements for occupational pension schemes to align their governance processes and disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Climate change is high on the agenda for the government and it is unsurprising that pension schemes are facing an increasing regulatory burden in this area. Initially the requirements would apply only to larger pension schemes and authorised master trusts, but smaller pension schemes should expect similar requirements to extend to them in the coming years. All trustees should therefore pay attention to these important developments.