Aligning your pension scheme with the Taskforce on Climate-Related Financial Disclosures recommendations
This guide aims to help trustees evaluate the way in which climate-related risks and opportunities may affect their strategies.
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Disclaimer
This guidance has not been updated since it was published.
Since then new regulations have come into force concerning climate change and occupational pension schemes and new statutory guidance has been published. Trustees of certain occupational pension schemes must now comply with requirements in the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021.
They must also have regard to statutory guidance on the governance and reporting of climate change risk in complying with those Regulations and in complying with certain related requirements set out in the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013.
These documents set out non-statutory guidance for the trustees of occupational pension schemes on assessing, managing and reporting climate-related risks in line with the Taskforce on Climate-Related Financial Disclosures (TCFD). It was produced by the cross-government and Industry group: the Pensions Climate Risk Industry Group (PCRIG).
The guidance consists of 4 parts:
- Part 1 ‘Introduction’ introduces climate risk as a financial risk to pension schemes, trustees’ legal requirements and the TCFD recommendations
- Part 2 ‘Trustee governance, strategy and risk management: how to integrate and disclose climate-related risks’ sets out a suggested approach for the integration and disclosure of climate risk within the typical governance and decision-making processes of pension trustee boards, including defining investment beliefs, setting investment strategy, manager selection, and monitoring
- Part 3 ‘Scenario analysis’ contains technical details on recommended scenario analysis
- Part 4 ‘Setting metrics and targets to measure and manage climate-related risk’ recommends metrics that trustees may wish to consider using to record and report their findings
Both full length and summary ‘quick start guide’ versions of each part have been produced.
Last updated 23 September 2022 + show all updates
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Added disclaimer to the page.
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First published.