Taking action on climate risk: Improving governance and reporting by occupational pension schemes: PLSA response

The PLSA response to the consultation which sets out a timeline for schemes to meet the proposed climate governance requirements – with the largest schemes (those with over £5bn in net assets) and master trusts expected to apply the requirements from 1 October 2021 and publish a TCFD report by 31 December 2022, and with smaller schemes (with over £1bn in net assets) needing to apply the requirements from 1 October 2022 and publish their report by 31 December 2023.

We set out:

• Support for utilising the TCFD recommendations 
• Support for applying the new framework to the largest DB schemes and Master Trusts first
• The challenges with data and metrics and flows of suitable data from asset managers
• That the resource implications are much larger than DWP’s cost analysis
• Issues with the frequency of some of the suggested reporting and ways to mitigate the proposals
• The need to further consider the impact on multi-employer schemes.