UK’s largest pension schemes could be required to publish climate risk disclosures by 2022

The Work and Pensions Secretary suggested funds with assets of at least £1bn could be required to meet the same requirement in 2023

Almost 100 of the UK’s largest pension schemes could be required to publish climate risk disclosures by the end of 2022.

That’s according to Work and Pensions Secretary Thérèse Coffey, who proposed plans for pension funds with assets of more than £5 billion to report the risks that climate change could have on members’ investments.

She also added the largest schemes could set an industry standard for those with at least £1 billion in assets to meet the same requirements in 2023 and explained ‘no pension scheme is too small to make a difference’.

Ms Coffey said: “These proposals would see the UK become the first major economy in the world to require climate risks to be specifically considered by pension schemes and will ensure trustees are legally required to assess and report on the financial risks of climate change within their portfolio.

“And any scheme that has no plan for the transition, is risking its future and the future of its members. Schemes of all sizes need to be acting right now for the financial risks and opportunities climate change presents, providing sustainable returns that will keep many pensioners comfortable in their retirement.”

The Work and Pensions Secretary made the announcement in Glasgow ahead of the COP26 climate conference due to be held in the city next year after it was delayed due to the coronavirus pandemic.

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