UK Pensions – Turning up the heat on climate change requirements for pension schemes

Last year, the government consulted on groundbreaking new requirements for occupational pension schemes to align their governance processes and disclosures with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Now the government has published a response to the consultation, together with a consultation on the draft regulations and draft statutory guidance required to implement the government’s policy proposals.

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.