Trustees Face “Steep Learning Curve” on Climate, UK Watchdog Admits

The Pensions Regulator (TPR) has sought to reassure UK pension trustees that their first climate risk reports will be used to inform best practice and no fines will be issued if a “genuine effort to comply” has been made. In a blog, David Fairs, Executive Director of Regulatory Policy, Analysis and Advice, said TPR recognised the data, resource and cost issues incurred in schemes’ compliance with the climate governance and reporting requirements of the Occupational Pension Schemes Regulations 2021, as well as a “steep learning curve” for individual trustees. “Trustees should seek to demonstrate that they have acted to fully understand the range of climate-related risks and opportunities their scheme is exposed to and have taken action to address those,” he said. The reports, due to be submitted in the coming months, will be used to provide high-level feedback to in-scope schemes and inform the Department of Work and Pensions’ review of the regulations in late 2023.

 

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