Net Zero Test

Baroness Boycott Excerpts

Thursday 22nd July 2021 Lords Chamber

[Lord Callanan (Con)]

I thank my noble friend for her comments and certainly agree with her. As she is well aware, the trustees of occupational pension schemes are independent of government; they are not bound by the commitments we have signed up to. However, given the significance of the financial risks posed by climate change, we expect all investment decisions made by pension scheme trustees to take climate change into account. As of 2019, trustees of pension schemes with 100 or more members have been required to set out in their statement of investment principles policies on stewardship on an ESG, including climate change.

[Baroness Boycott (CB)]

My Lords, if this test was brought in, would it not help government departments by giving them a very clear direction of travel? It would cover the sorts of decisions we are still wrestling with—Cambo in the North Sea and the Cumbrian mine—which have somehow slipped through despite government ambitions to reach carbon neutrality. This test could save future Ministers’ blushes. Can the Minister say what discussions have been had about this proposal and whether he will advocate it to his ministerial colleagues?

[Lord Callanan (Con)]

We have not had any discussions about implementing this proposal yet. We will respond to the Climate Change Committee’s recommendations in due course. But we are looking at the impact of climate change across all our policies. As I said, we have a couple of senior Cabinet-level committees, one chaired by the Prime Minister, which take all of these things into account.