Oral Answers to Questions

Christian Wakeford Excerpts

Monday 19th October 2020 Commons Chamber

[Christian Wakeford (Bury South) (Con)]

What steps she is taking through the Pension Schemes Bill to support the Government’s commitment to net zero carbon emissions by 2050.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman) [V]]

As my hon. Friend knows, we want safer, better and greener pensions. This Government were the first in a G7 country to legislate for net zero by 2050. We lead the way on environmental regulation of pensions, and we are introducing transparency of climate-related financial disclosures in the Pension Schemes Bill that require schemes to take account of climate change goals, including net zero.

[Christian Wakeford]

I thank the Minister for his response. Climate change is the single biggest threat not only to mankind, but to the planet. Does he agree with me that if we are to meet the climate change targets set out in the Paris agreement, more needs to be done to ensure that large financial institutions, including institutional investors such as pension funds, channel more investment into areas that do not actively harm our environment and contribute to climate change?

[Guy Opperman]

I agree with my hon. Friend. The Government are setting a regulatory framework and enabling pension funds to make sustainable investments happen, whether that is through the Bill itself or through our illiquid investments proposals, which will see renewables, hydrogen and potentially new nuclear. We do not believe in divestment, but we welcome the change in investment practice that is already beginning to take place, although we want to see more.