The UK pensions regulator, TPR, has threatened to take enforcement action against schemes that do not step up on climate change, as part of its new climate strategy released today.
The regulator said that reporting in line with the recommendations of the Task force on Climate-related Financial Disclosures (TCFD) represented “compliance with the basics on climate change”. Under recent legislation, large pension funds will be required to produce annual TCFD reports, including detailed scenario analysis. TPR said it would take action against non-compliant schemes, saying that trustees should demonstrate that “words and intentions translate into action” on climate change.
Since 2019, schemes in the UK with 100 or more members have been required to set out stewardship and ESG policies in their Statement of Investment Principles (SIP), and must publish these online before October 2021.
TPR said in its new strategy that it would take a proactiv…