Updated with correction
Trustees of U.K. retirement plans adjusting to new climate-related reporting rules are preparing for more changes as regulators consider further demands before the first reports are turned in.
Larger plans with assets of at least £5 billion ($6.8 billion) have been following new standards for climate-related governance and reporting since October, while funds with £1 billion or more will start this October. The standards apply to defined benefit and defined contribution plans.
The new rules, based on a framework developed by the Task Force on Climate-related Financial Disclosures, make the U.K. "the first G-7 country in which trustees of pension schemes are statutorily required to consider, assess and report on the financial risks of climate change within their portfolios," said Guy Opperman, U.K. minister for pensions and financial inclusion, in a foreword to the rules finalized in October.
With nearly £2 trillion in assets between occupational defined benefit and defined contribution plans, according to the U.K. Department for Work and Pensions, the sector plays a key part in helping the country fulfill its goal to be a climate leader and to have mandatory TCFD-aligned disclosure across the economy by 2025, said Mr. Opperman and DWP Secretary of State Therese Coffey in the foreword.