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TPR statement on climate risk guide consultation

Ref: PN20-11

Issued: Thursday 12 March 2020

The Pensions Regulator (TPR) has welcomed the launch of a consultation to help trustees assess, manage and report on climate-related risks.

This morning, pensions minister Guy Opperman announced the public consultation on new non-statutory guidance for trustees of occupational pensions schemes on the risks and opportunities associated with climate change.

The draft guide has been drawn up by the Pensions Climate Risk Industry Group (PCRIG) a group set up last summer by the Department of Work and Pensions, TPR and other pension representatives.

Go to aligning your pension scheme with the Taskforce on Climate-Related Financial Disclosures (TCFD) recommendations to read the draft guide and take part in the consultation.

PCRIG intends to ensure its guidance is in line with recommendations from the Taskforce on Climate-related Financial Disclosures.

The guide is designed to help trustees meet their existing legal obligations to consider financially material factors in investment decision-making and help them embed climate-risk considerations into their trustee governance and risk management process.

David Fairs, Executive Director of Regulatory Policy, Analysis and Advice at TPR, said: “Climate change is a core financial risk which pensions trustees must consider when setting out their investment strategy.

“That’s why PCRIG’s guide is so important as it will help trustees demonstrate how they are taking this and other financially material considerations into account over the lifespan of their investments.

“I urge the industry to take part in this consultation and help shape guidance which will ultimately mean savers are best protected from the far-reaching financial risks that could arise from climate change and a transition to a carbon-neutral economy.”

The consultation, which opened today, closes at 11.45pm on 7 May 2020. PCRIG intends to publish the final guidance in the autumn.

Notes to editors

  1. Speaking at the launch of the consultation at the Pensions and Lifetime Savings Association investment conference in Edinburgh, Mr Opperman said: “I am committed to ensuring all pension scheme trustees do everything they can to act to limit the risk climate change poses to their members’ future retirement income. TCFD is the most widely adopted way in which organisations are managing and reporting climate risk, I want to ensure all trustees have the help they need to align their schemes with its recommendations. That is why I welcome this guidance and the subsequent consultation.”
  2. TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).

Press contacts

Dan Menhinnitt

Media Officer
pressoffice@tpr.gov.uk
01273 349511

Matt Adams

Media Relations Manager
pressoffice@tpr.gov.uk
01273 662086

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