Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

TPR publishes new climate change strategy

Open-access content Tuesday 13th April 2021
TPR publishes new climate change strategy

The Pensions Regulator (TPR) has published new guidance to help pension scheme trustees manage the financial risks of climate change after warning that retirement savings are at risk.

The strategy outlines how all schemes must comply with requirements to publish their statement of investment principles (SIP) – including their policies on stewardship and financially-material environmental considerations – along with their implementation statement.

TPR said that these disclosures represent “compliance with the basics on climate change”, and that it will take enforcement action if schemes fail to comply.

The strategy also urges pension schemes to devote more board time to climate change, to consider specific training, and to integrate consideration of climate risk right across decision-making.

This comes ahead of proposed regulations which will require trustees of larger schemes to maintain oversight of, and make mandatory disclosures in relation to, climate risks.

David Fairs, TPR’s executive director of regulatory policy, analysis and advice, said: “Driving trustee action on the risks and opportunities from climate change will create better outcomes in later life for workplace savers.

“Our strategy outlines how we will help trustees comply with the new rules for larger schemes, but it signals work on climate change needs to happen right across the pensions landscape.

“Climate change is a risk for schemes whatever the size or investment strategy. It is clear that all schemes need to build their capacity in this area if they haven’t already.”

Proposals under the Pension Schemes Act will see larger schemes and all master trusts required to disclose their Taskforce on Climate-related Financial Disclosures (TCFD) report. 

By the end of 2023, TPR anticipates that a significant amount of pension savings will be in schemes reporting in line with the TCFD recommendations, covering 81% of members, and 74% of occupational pension scheme assets.

It is planning to publish guidance later this year, following engagement with industry, to help schemes comply with the new legislation and make consideration of climate change risks and opportunities part of their systems of governance.

“Building capacity means trustees will be better placed to understand what climate-related issues mean for their scheme – and better able to make decisions which contribute to good saver outcomes,” Fairs continued.

“Where we do not see schemes complying with the rules, we will consider enforcement action. Our strategy also shows how we, as an organisation, will play our part in the UK’s transition to net zero.”

 

Image credit: iStock

Author: Chris Seekings

You may also be interested in...

Pension funds kept in the dark on voting information

Pension funds kept in the dark on voting information

Asset managers are keeping UK pension funds in the dark on how they exercise their voting rights and engage with the companies they invest in, a study by Dalriada Trustees has found.
Tuesday 16th March 2021
Open-access content
Savers unaware their pension could be driving climate change

Savers unaware their pensions could be driving climate change

Most savers in the UK have no idea where their pension is invested and that their money could be driving climate change, a YouGov poll has uncovered.
Wednesday 12th May 2021
Open-access content
COVID-19 unlikely to lead to large reduction in pension liabilities

COVID-19 unlikely to lead to large reduction in pension liabilities

The UK's defined benefit (DB) pension schemes are unlikely to see a large fall in their liabilities due to the COVID-19 pandemic, research by Lane Clark & Peacock (LCP) suggests.
Tuesday 20th April 2021
Open-access content
IFoA unveils findings of its Great Risk Transfer campaign

IFoA unveils findings of its Great Risk Transfer campaign

The Institute and Faculty of Actuaries (IFoA) has today published practical solutions for how individuals can take greater control of their finances following its Great Risk Transfer campaign.
Wednesday 21st April 2021
Open-access content
Professional pension trustee market grows rapidly

Professional pension trustee market grows rapidly

Professional trustee firms are growing in size and influence as they become more prevalent on boards and increasingly take sole responsibility for running UK pension funds, new research by Isio has uncovered.
Tuesday 27th April 2021
Open-access content
Alarm raised over retirement savings shortfall

Alarm raised over retirement savings shortfall

Many more members of defined contribution (DC) pension schemes are heading to retirement with inadequate savings than previously thought due to outdated modelling, new analysis suggests.
Wednesday 28th April 2021
Open-access content
Filed in
News
Topics
Pensions
Environment
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ