Pension Schemes Act 2021

Section 124 of the Pension Schemes Act 2021 amends the Pensions Act 1995 to allow for the creation of regulations that may impose climate change related requirements on the trustees or managers of an occupational pension scheme of a prescribed description. Requirements may relate to both climate risks and opportunities, and cover both physical risks and transition risks. Managers and Trustees may be required to adopt prescribed assumptions about future events, in particular "the achievement of the Paris Agreement goal or any other climate change goal".

The ammendments also provide that regulations may require the publication of information relating to the effects of climate change on a given pension scheme in a prescribed format. Ministerial Statements associated with the passage of the Bill make clear that these provisions are intended to allow the Government to require disclosure in line with the recommendations of the Task Force on Climate Related Financial Disclosures.