Department for Work and Pensions
New measures to propel 'superpower' of pensions in UK’s net zero journey
UK pensions have been given a green boost through new measures which will drive forward ambitions to tackle climate risk.
These will require pension schemes to measure and publish how their investments support the Paris Agreement climate goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels.
For the first time, pension savers will be able to see the impact of their investments and better understand how climate risks are being considered and mitigated, via climate risk reports published by their pension scheme.
Together with existing climate regulations, the new measures will mean from October this year more than 80% of UK pension scheme members will be invested in pension schemes subject to these new rules.
This is helping pave the way for greener pensions amid an economic transition to net zero that will create the opportunity to invest in green businesses, support jobs for the future, and ultimately help grow a stronger and more sustainable economy.
Secretary of State for Work and Pensions Thérèse Coffey said:
We are making sure our pensions can be a superpower delivering prosperity for people – and the planet – by making changes to the rules about how they are managed.
We’re paving the way for greener pensions which can offer sustainable returns for members while accelerating our net zero ambition and supporting local jobs.
The measures are part of a consultation response published on 17 June 2022 as the Secretary of State visited Abbey View Produce in Bury St Edmunds. Developed with financial backing from UK pension funds managed by Greencoat Capital, the greenhouse is a world first low carbon heating and greenhouse facility – demonstrating the power of pensions and their role in net zero.
James Samworth of Greencoat Capital said:
The greenhouses are a brilliant example of how pension funds can have a direct impact. Abbey View at Bury St. Edmunds are decarbonising UK horticulture, improving food security, and creating employment whilst delivering secure income for pensioners. Renewable energy more broadly is a great asset class for pension funds, matching their liabilities with long-term, inflation linked returns.
The publication comes ahead of a 3-week ‘Green Nudge’ trial which will see pension scheme members encouraged to learn more about making greener pension choices.
In recent years, the DWP has also opened doors to a wider range of investments – known as illiquid investments – for occupational pension schemes, making it easier for them to invest in projects that will help move the dial towards a carbon free economy, including infrastructure projects.
Read the full consultation response Climate and investment reporting: setting expectations and empowering savers
Latest News from
Department for Work and Pensions
New package of support to help over 50s jobseekers back into work05/07/2022 12:20:00
The government yesterday announced millions of pounds of new measures to tackle unemployment amongst the over 50s on benefits.
Drive to reduce the cost of childcare for parents04/07/2022 15:14:00
Package of measures will increase childcare support for parents, boost the number of childminders and drive take up of childcare offers, to address rising costs.
Unscrupulous landlords who exploit vulnerable residents to be driven out of supported housing sector04/07/2022 14:44:00
Supported Housing Improvement Programme will help councils in worst-affected areas tackle bad quality and poor value for money in supported housing.
More healthcare professionals can certify fit notes from today01/07/2022 16:10:00
Nurses, occupational therapists, pharmacists and physiotherapists can now certify and issue fit notes in addition to doctors.
Half a million benefit claimants get jobs in under 6 months30/06/2022 11:15:00
Half a million people have been supported into work in less than 6 months thanks to “Way to Work”, a government drive to get jobseekers into vacancies.
UK Disabilities Minister calls on Welsh sporting clubs to be more inclusive29/06/2022 11:20:00
The UK’s Minister for Disabled People, Health and Work Chloe Smith has called on more Welsh sporting clubs and organisations to include disabled people in their activities.
Jobcentres back 1,000 women into construction23/06/2022 16:25:00
1,000 women have got jobs in the construction and engineering sector, thanks to a partnership between DWP and Women into Construction.
Low income pensioners to get easier access to free TV licences23/06/2022 16:12:00
New measures to stop over-75s on Pension Credit having to obtain paperwork to get a free TV licence