18 Nov 2020

Defined contribution pensions and dealing with climate change

Climate change is not going away. It's an issue that will be felt by all defined contribution (DC) savers, not only impacting their everyday lives, but also representing a material risk to their retirement outcomes. Asset owners such as pension scheme trustees and governance committees are also facing additional regulatory requirements in this area.

We have compiled a detailed guide which includes a checklist to help you address climate change in your scheme and also sets out the importance and background behind these measures.

We strongly suggest that you add climate change to your agenda as soon as possible to consider your approach to managing the risks and capturing opportunities associated with climate change.

The key areas addressed in the guide are:

A checklist to address climate change in your scheme
Why is climate change important?
What impact will climate change have on financial markets?
The role of pension schemes in addressing climate change
Regulatory requirements for DC schemes
Understanding and applying the Taskforce for Climate related Financial Disclosures (TCFD) framework.

The authors are Simon Jones, head of responsible investment and Callum Stewart, investment consultant, both from Hymans Robertson.

This article is provided by Hymans Robertson.