The Pensions Regulator has now warned UK trustees of legal consequences should they neglect their disclosure responsibilities regarding climate risk.
The advisory issued states that a failure to deliver mandatory disclosures for climate risk could result in pension plans facing enforcement action.
Ahead of the regulations proposed in the 2021 Pensions Schemes Act, The Pensions Regulator has presented a climate change strategy. The act will insist that trustees for pension plans that have 100 or more members must submit disclosures related to climate risk. The recently revealed strategy emphasises the regulator’s stance and expectation that trustees of pension plans will adhere to the established requirements, and publish their stewardship policies and investment principles, including environmental considerations, in a statement. The regulator also expects them to release a statement about how these tenets will be implemented.
The Pensions Regulator’s executive director for regulatory policy, analysis and advice, David Fairs, commented in a recent statement:
“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. Where we do not see schemes complying with the rules, we will consider enforcement action.”
The regulator added that it will urge plan trustees to pay particular attention to climate change when constructing investment selections and portfolios.
From pension plans to investment portfolios, those seeking investment advice in Shropshire, Chester and other parts of the UK can rely on wealth management firms for specialist support.
