There is a statutory requirement for the largest schemes to
publish climate change governance reports and the Regulator has
published its review of 30 such reports.
Where an occupational pension scheme has relevant assets of
£1 billion or more at the end of a scheme year ending on or
after March 1, 2022, it falls within the reporting requirements,
and the Regulator's review considered the quality and
consistency of reporting against both the legal requirements and
the statutory guidance.
The reports showed that trustees took a range of actions to
address climate risks and opportunities. These included updating DC
default lifestyle strategies to include sustainable funds,
increasing allocation to low carbon tracker funds, and articulating
stewardship priorities on climate change mitigation, climate change
adaptation and avoiding biodiversity loss.
