Pension Funds: Fossil Fuels
The question
To ask the Secretary of State for Work and Pensions, pursuant to the Answers of 14 October 2025 to Questions 77787, 77788 and 77789 on Pension Funds: Fossil Fuels, what estimate The Pensions Regulator has made of the (a) proportion of UK pension scheme assets invested in (i) thermal coal-fired and (ii) other fossil fuel-fired power generation capacity, (b) contribution of UK pension funds to fossil fuel expansion in (i) the UK, (ii) Europe and (iii) other international markets and (c) value of UK pension fund assets invested in fossil fuels that are at risk of becoming stranded.
Answered by Torsten Bell
The Pensions Regulator (TPR) has not produced such estimates.
Occupational pension schemes are required to set out how they consider financially material environmental, social and governance factors in their Statements of Investment Principles and to report annually on implementation. Larger schemes must also disclose their climate related risks and opportunities in line with the Task Force on Climate related Financial Disclosures framework. A 2024 TPR review found that more than 60% of sampled schemes had set a net zero goal for 2050 or earlier. The Department for Work and Pensions (DWP) is currently undertaking a Post Implementation Review of the TCFD regime. We will report our findings this year.
In parallel, Government is working on the adoption of UK Sustainability Reporting Standards aligned with international standards and on mandating climate transition plans. TPR’s Transition Plan Working Group, which includes representatives from across the pensions industry, will report to the DWP in the spring. These initiatives will continue to strengthen transparency around scheme exposures to climate related risks and support the UK’s net-zero goals and broader green agenda.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →