The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)

The UK was the first G7 country to legislate for net zero and it will be the first to legislate for the Task Force on Climate-related Financial Disclosures—ensuring we tackle climate change and deliver safer, better and greener pensions.

Today I have laid the draft Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021. These regulations are world-leading and will embed the recommendations of the Task Force on Climate-related Financial Disclosures into UK law.

Climate change is an existential challenge to our environment, but not only that: it poses a systematic financial risk and threat to the long-term sustainability of UK pensions. With almost £2 trillion in assets under management, all occupational pension schemes are exposed to climate-related risks—which could have a detrimental impact on their members’ future retirement income. Pushing forward our drive for greener pensions, I consulted on detailed requirements to allow more effective governance of climate risks and disclosure in line with the Task Force on Climate-related Financial Disclosures’ recommendations in August last year. Further consultation on draft regulations took place earlier this year. We have worked directly with industry throughout this process, recognising widespread acceptance across the sector for the principle of more effective action on climate risk. The Government laid the legislative groundwork for these regulations in the Pension Schemes Act 2021.

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