Climate and investment reporting: setting expectations and empowering savers
Consultation seeking views on the policy proposals on Paris alignment reporting, accompanying draft regulations and statutory guidance, and draft statutory/non-statutory guidance explaining DWP’s expectations on Implementation Statement reporting and the Statement of Investment Principles.
It is proposed that the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 are amended to require trustees subject to those regulations, to calculate and disclose a portfolio alignment metric setting out the extent to which their investments are aligned with the goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels. This document therefore also consults on the draft Occupational Pension Schemes (Climate Change Governance and Reporting) (Amendment, Modification and Transitional Provision) Regulations 2022, and draft amendments to statutory guidance.
The consultation also seeks views on:
- draft non-statutory guidance explaining best practice in relation to the Statement of Investment Principles (which describes trustees’ climate change and stewardship policies)
- draft statutory guidance explaining our expectations across the Implementation Statement (which describes how they have implemented these policies)
Who this consultation is aimed at:
- pension scheme trustees and managers
- pension scheme members and beneficiaries
- pension scheme service providers, other industry bodies and professionals
- civil society organisations
- any other interested stakeholders