Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if her Department will make an assessment of the potential merits of taking steps to limit levels of pension investment into unsustainable fossil fuel practices.

The UK pension sector is increasingly playing a role in investing in a more sustainable future, with many schemes setting net-zero targets and actively engaging with companies to reduce emissions. As part of the pensions legislative and regulatory framework, there are requirements for regular reporting, including through Statements of Investment Principles, Implementation Statements and annual reports aligned with the Taskforce on Climate-related Financial Disclosures (TCFD), along with voluntary Stewardship Code Reports. Taken together these requirements mean pension schemes must disclose how they are managing risks from any exposure to fossil fuels.

The Government has consulted on new UK Sustainability Reporting Standards aligned with international sustainability standards, and on our manifesto commitment on climate transition plans. Analysis of industry feedback currently underway will help shape future policies in these crucial areas. These measures aim to improve transparency and accountability across the economy, helping investors, including pension schemes, understand how climate and nature-related issues affect their portfolios.