Aligning your pension scheme with the TCFD recommendations

This consultation sets out non-statutory guidance for the trustees of occupational pension schemes on assessing, managing and reporting climate-related risks in line with the Taskforce on Climate-Related Financial Disclosures (TCFD).

This follows the Green Finance Strategy announcement in July 2019 of the establishment of an cross-government and industry group to develop and consult on the guidance.

• part 1 of the guidance introduces climate risk as a financial risk to pension schemes, trustees’ legal requirements and the TCFD recommendations
• part 2 sets out a suggested approach for the integration and disclosure of climate risk within the typical governance and decision-making processes of pension trustee boards, including defining investment beliefs, setting investment strategy, manager selection, and monitoring
• part 3 of the guide contains technical details on recommended scenario analysis and metrics that trustees may wish to consider using to record and report their findings