New climate regulations for pension schemes are coming in thick and fast, and pension schemes have no choice but to sit up and take notice.” – Barnett Waddingham comments on the DWP’s announcement on climate change legislation
The Department for Work and Pensions (DWP) has today announced that the UK will be the first major economy to push forward plans to make pension schemes mitigate against the risks of climate change.
The new regulations, subject to Parliamentary debate, will affect all authorised master trusts and schemes with £5 billion or more in assets from October 2021 onwards.
Commenting on the announcement, Amanda Latham, Policy & Strategy Lead at Barnett Waddingham, highlights the importance of the pensions industry supporting the move to a Net Zero economy.
Amanda Latham, Policy & Strategy Lead at Barnett Waddingham, commented: “New climate regulations for pension schemes are coming in thick and fast, and pension schemes have no choice but to sit up and take notice. If the UK’s legal obligation to achieve a Net Zero economy by 2050 wasn’t enough, the Task Force on Climate-related Financial Disclosures (TCFD) shines a spotlight on pension trustees, who are being urged to pick up the pace and act collaboratively. There is huge consumer demand for greener investment decisions, and the scale of the pensions industry means it’s perfectly placed to support the transition to a more resilient, fairer, and lower carbon economy. For those that choose not to act, the consequences will be notable – both on the bottom line, and on our global environment.”