In the UK, disclosures per the Taskforce for Climate-Related Disclosures (TCFD) framework became mandatory for the largest pension schemes (£5 billon+ assets), authorised master trusts and CDC schemes (once established) in October 2021. Smaller schemes (£1 billion+) will need to comply from 1 October 2022.
It’s important to be aware of the possible pitfalls on the path to effective climate-related financial disclosures and consider what pension schemes can do to avoid these, including:
- How pension trustees can make their disclosures reliable, verifiable and objective;
- The requirements of the regulations and statutory guidance;
- Specific actions that trustees can take to ensure quality disclosures against each of the TCFD pillars of governance, strategy, risk management and metrics and targets; and
- The role of third-party assurance and how this can ensure the data is accurate, and that scenarios and assumptions have been applied appropriately and consistently with business decisions to be made.
Access the full guide for occupational pension schemes.