Pensions Regulator publishes its findings on climate change governance reports

There is a statutory requirement for the largest schemes to publish climate change governance reports and the Regulator has published its review of 30 such reports.

Where an occupational pension scheme has relevant assets of £1 billion or more at the end of a scheme year ending on or after March 1, 2022, it falls within the reporting requirements, and the Regulator’s review considered the quality and consistency of reporting against both the legal requirements and the statutory guidance.

The reports showed that trustees took a range of actions to address climate risks and opportunities. These included updating DC default lifestyle strategies to include sustainable funds, increasing allocation to low carbon tracker funds, and articulating stewardship priorities on climate change mitigation, climate change adaptation and avoiding biodiversity loss.