Large UK pension funds will be required to commence climate reporting in line with recommendations from the Task Force on Climate-related Financial Disclosures (TCFD) from 2021, according to the latest proposals by the UK government.
A consultation has been kicked off today on plans to require schemes to disclose their carbon footprint and governance structure, and undertake detailed climate scenario analysis.
This is the second consultation on mandatory TCFD-aligned reporting: in August 2020, the Government launched a six-week consultation on its initial proposals, which received 99 responses from pension funds, NGOs and asset managers, including USS, Trades Union Congress and ShareAction.
Initially, the obligations, which will be introduced using powers granted to the Government under the Pension Schemes Bill, will only apply to schemes with more than £5bn in assets, but the threshold will fall to £1bn from October 2022.
Under the current…