Commenting on the Taking action on Climate Risk: Improving Governance and Reporting by Occupational Pension response and consultation, Simon Jones, Head of Responsible Investment, Hymans Robertson says:

“DWP’s response to the consultation on climate governance and reporting requirements is welcome and we’re pleased that several of the changes we advocated for have been reflected in the updated policy proposals. Changing the requirements for trustees on the frequency of both scenario analysis and reporting is appropriate given data availability and the meaningfulness of such assessments. We want trustees to engage with climate change and the analysis they undertake should allow them to take informed action, rather than box tick.

“The requirement for more and better information will rightly place an added reporting requirement on asset managers, emphasising a theme of transparency within the consultation response. Asking for information creates scrutiny and ultimately change, reminding us that we should not lose sight of the broader goals that these policy proposals are striving for. We want an economy that recognises the importance of the environment. We want sustainability and the consideration of climate risk to be embedded in the financial system, and for capital to be directed towards companies that will lead the transition to a lower-carbon economy. And we want pension trustees and the broader financial services industry to be an integral part of this change. Huge challenges remain, however the proposed regulations will help to achieve these aspirations.”