More investment in climate related/ESG projects says the Regulator. Will it make a profit to fund a pension scheme in 30 years time and pay a pension that people can actually live on, since the State pension will almost certainly be abolished by then? Big challenges ahead.
Here’s the word from TPR;
The Pensions Regulator (TPR) has urged trustees to go beyond minimum compliance with environmental, social and governance (ESG) duties.
In a blog, published today (Monday), Mark Hill, Climate and Sustainability Lead at TPR, called on trustees to access TPR’s new suite of essential resources, which will help them build their knowledge and understanding and embed ESG decision making into every area of scheme governance and stewardship.
He said: “The ESG and climate disclosures which schemes publish, should be the product of the strategic decisions and actions trustees have taken to protect savers’ outcomes from risk. They should also demonstrate what trustees have done to take advantage of the opportunities presented by the UK’s ambition to transition to a net zero economy by 2050.
“But disclosure alone is not enough. Considering ESG factors as part of a scheme’s wider decision-making is vital to protect savers’ pensions. It should be business as usual for trustees, not something considered only when it’s time to complete a report.”
Mark added TPR would look more broadly at investment governance practice and decision-making, including around ESG. This will help TPR constructively challenge trustee decision-making to ensure savers’ interests are being met.
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