From 1 October 2021, trustees of certain schemes face new requirements intended to improve the quality of governance and reporting as they address climate-related risks and opportunities. 

TPR's proposed guidance describes what trustees will need to do and report on in order to comply with the new legislation.  The consultation also includes a proposed new appendix to TPR's monetary penalties policy which outlines its proposed approach to imposing penalties for non-compliance with the new regulations.

The proposed guidance complements and should be read alongside the Department for Work and Pension's (DWP's) statutory guidance (link to guidance) which Trustees of occupational pension schemes must have regard to when meeting requirements under the proposed new regulations.  Additionally trustees should refer to the non-statutory guidance (link to DWP website) issued by the Pensions Climate Risk Industry Group (PCRIG). This is non-mandatory guidance but might be helpful for trustees to consider in addition to the statutory guidance which must be followed.

The consultation closes on 31 August 2021 and can be accessed from The Pensions regulator website.