Pension Funds: Climate Change
The question
To ask the Secretary of State for Work and Pensions, if she will take steps to require pension funds to comply with the climate rules in the Paris Agreement.
Answered by Emma Reynolds
Occupational pension schemes with assets of £1billion or more have been required to publish annual reports setting out how they are managing climate risks and opportunities in line with the Task Force on Climate-related Financial Disclosures (TCFD) since 2022. These reports include, so far as they can, how their portfolio investments are consistent with the Paris Agreement goal of limiting temperature increase to 1.5 degrees above pre-industrial levels.
A growing number of financial institutions and companies are setting goals to achieve net zero emissions in their business plans, and developing climate transition plans to map out how they will achieve this. Our manifesto committed to introducing new requirements in relation to transition plans for listed companies and financial institutions, including pension schemes.
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