Commenting on TPR’s Defined Contribution trust-based pension schemes research, Callum Stewart, Senior DC Consultant, Hymans Robertson says:

“We are supportive of The Pensions Regulator call to action on Climate Change, and today’s report provides welcome focus on this subject. Climate risk is a material financial risk, particularly for those with the longest time horizons such as DC members. The pensions industry has a collective responsibility to ensure the potential impacts of climate change are properly understood, and strategies put in place to mitigate the risks capture the opportunities. This will not only lead to better financial outcomes, but improve quality of later life. This has been an area of focus for many of our clients, and we see this continuing throughout 2021 and beyond.

“We have considered the impacts of climate change on our own pension plan, and taken steps to reduce the carbon footprint by around one third for younger members. We are already seeing improved engagement from members, and real action with some of our members increasing their contributions as a result of our more sustainable approach.

“Although some progress has been made within the industry, there is still a lot of work to do. We are supportive of the continued focus on climate issues and their impacts, and of campaigns such as Make My Money Matter driving positive change in pension scheme defaults. For those still to approach the subject, we suggest building knowledge and understanding in the first instance.”