Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she has made an assessment of the potential merits of ensuring that newly appointed pension fund trustees are aware of the responsibility to consider climate risks in investments.

There are a range of governance and reporting requirements that trustees, including new trustees, must meet. For trustees in scope, this includes disclosing Environmental, Social and Governance (ESG) policies in the Statement of Investment Principles (SIP) and explaining how and the extent to which those policies have been followed over the scheme year. Guidance is available from the Pensions Regulator (TPR) to help trustees understand these requirements and the 2024 Market Oversight Review provides further insight into TPR’s expectations around ESG duties.

The Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 place requirements on trustees in our largest occupational pension schemes to demonstrate how they are managing climate-related risks and opportunities in an annual Taskforce on Climate-related Financial Disclosures (TCFD) report. TPR’s Guidance includes a step-by-step example to help trustees develop their understanding of the requirements and upskill newer trustees. In a 2024 review of TCFD reports, TPR reported confidence in trustees maintaining up-to-date knowledge and understanding of climate risk.

As set out in their Climate Adaptation Report (2025), TPR is proactively focused on raising trustee awareness of climate-related systemic risks. TPR also continues to support new trustees through specific guidance and the Trustee toolkit, a free online learning programme that helps trustees gain the relevant skills, knowledge and understanding needed to fulfil their role.