Be prepared: 75% of pension schemes have net zero plans

Almost three quarters (74%) of pension schemes have net zero plans in place, or will do within the next two years, according to a Pensions and Lifetime Savings Association (PLSA) survey.

The survey shows that schemes are making progress towards net zero, with new Taskforce on Climate-related Financial Disclosures (TCFD) requirements likely to swell those numbers further.

The survey found two-thirds (63%) of schemes have started working on their TCFD report, with over half (55%) saying they are within the scope of the reporting deadline and so plan to publish one this year.

More than a quarter (28%) have gone a stage further and said that they have already published their TCFD report, despite it not being a mandatory requirement.

Two-thirds (68%) see climate transition plans as their key priority as investors. More than half (56%) see these being net zero targets, while around a third (37%) see board diversity and human rights (35%) as key priorities.

Diversity and inclusion (51%) and human rights (49%) lead the non-climate targets that many organisations expect to focus on the next 18 months.

Nigel Peaple, director of policy & advocacy at PLSA, said: “Striving to improve investment practices, and robust transparency standards across the investment chain, are an essential part of ensuring schemes can act as responsible stewards on behalf of millions of UK pensions savers.”