The latest regulations on ESG disclosure contained in the Pension Schemes Act 2021 will be enacted later this year.
All defined benefit, defined contribution pension schemes, as well as those operating master trusts, are required to consider and disclose climate related financial risks and opportunities in line with the Taskforce for climate-related Financial Disclosures (TCFD) recommendations.
Local authority schemes are not covered by this legislation, but it is anticipated that similar rules will be imposed some time later this year.
Consulting firm Redington has published a short guide on TCFD alignment with a checklist to help schemes get to grips with the new environment.
By way of leading by example, Redington has published its first stewardship report to demonstrate how it is putting into practice the advice it offers to its clients.
Zoe Taylor, deputy CEO and board director at Redington, said: “Effective stewardship of capital across the entire investment value chain is crucial if we are to overcome the sustainability challenges that face us, our clients and the whole of society. It is our responsibility to play a meaningful part in this journey.”
“Our stewardship role relates to helping our clients establish their own approach to stewardship, but also through the promotion of our clients’ interests through our dialogue and engagement with asset managers. However, we recognise that more can be done, and that we will do more,” she continued.