Commenting on today’s TPR Climate Change Strategy, Lisa Deas, Actuary says:

“We welcome The Pensions Regulator’s climate change strategy providing insight on the guidance and support trustees can expect over the next few years to help them manage climate risk and opportunities effectively. In particular, we welcome TPR’s plans to bolster the climate change content on the trustee toolkit which we had advocated in our response to the DWP’s consultation on ‘Taking action on climate risk: improving governance and reporting by occupational pension schemes’. This change will give all trustees access to free training materials to improve understanding of climate change and take direct action. The strategy also provides further detail on how TPR will support the new requirements of the Pension Schemes Act 2021 (which will see large pension schemes and all master trust and collective DC schemes having to report in line with the TCFD recommendations), in particular with guidance to support the regulations. Many schemes will welcome the plans to publish best practice example TCFD reports, albeit this isn’t planned until the regulations are reviewed in 2023 so will not inform the early rounds of reporting. We strongly welcome the measures designed to support smaller schemes who aren’t subject to the TCFD reporting requirements – in particular the planned guidance on taking climate change into account in integrated risk management.”