Pension Schemes Bill [Lords]

Debate between Matt Western and Andrea Leadsom

2nd reading & 2nd reading: House of Commons & Money resolution & Money resolution: House of Commons & Programme motion & Programme motion: House of Commons
Wednesday 7th October 2020 Commons Chamber

[Andrea Leadsom]

Exactly, Mr Speaker—at least. I was referring to people who are starting to have to think seriously about these issues.

My fourth and final point is about investing in decarbonisation. It was fantastic yesterday to hear the Prime Minister talking about our ambition to be world-leading in clean growth. That was, in fact, the No. 1 priority that I set out for the Department for Business, Energy and Industrial Strategy when the Prime Minister first took office last year. I know that my right hon. Friend the Secretary of State and my hon. Friend the Minister are determined to help our pensions system contribute to the excellent action on decarbonisation that the Government are already taking. I totally agree with them that this multibillion-pound sector can be a real force for good, and investing in the green economy can play a part in helping us to level up across the UK.

[Matt Western (Warwick and Leamington) (Lab)]

I just want to pick up on those points. The right hon. Lady is making some powerful arguments, and I commend her for that. She will probably have picked up, as I did the other day, that Exxon Mobil has been surpassed in terms of the value of its business by a Florida-based renewables company. When we consider that that was the origin of the Rockefeller Foundation wealth, it just goes to show that had we invested in some of those organisations earlier and provided encouragement, through tax or other fiscal incentives, for pensions to get into that sector, we would have done extremely well.

[Andrea Leadsom]

The hon. Gentleman makes a good point. We should highlight the excellent work of some of the traditional high-carbon emitting companies of the past, which are really transforming themselves to become the renewables companies of the future. Some of the announcements made by BP, for example, have been incredibly welcome, especially those that show its determination to reduce its carbon footprint and to become one of the best and greenest companies of the future.      

So I agree that by encouraging pension funds to invest in greener industries, we can help to improve our green economy and thereby level up across the UK and create hundreds of thousands of jobs. May I therefore ask my right hon. Friend the Secretary of State and my hon. Friend the Minister what conversations they have had with our right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy about the Government’s proposed reforms to corporate governance and audit? There is no doubt that audit reform could provide a much greater focus on what businesses are actually doing to improve their carbon footprint, and corporate governance changes could improve the incentives on company directors to prioritise carbon reduction and protecting the environment. With improved transparency and information about company performance, it will be considerably easier for pension fund managers to make investment decisions that will build security for us all in older age as well as protecting our planet, which is a top priority for so many people right across our economy.

Once again, I welcome this very important Bill, which I think is going to be quite transformative. I hope that my right hon. Friend and my hon. Friend will take my comments and suggestions in the light in which they are given, which is to try to improve and build on the excellent work that they have already done.