C1C2C3Part I Occupational pensions
Pt. I applied (with modifications) (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 2
Pt. I: Pensions Act 2004 (c.35), Pt. 3 construed as one with Pt. I of this Act (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 233, 322(1) (with s. 313); S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1
Functions of trustees or managers
41AF1Climate change risk
1
Regulations may impose requirements on the trustees or managers of an occupational pension scheme of a prescribed description with a view to securing that there is effective governance of the scheme with respect to the effects of climate change.
2
The effects of climate change in relation to which provision may be made under subsection (1) include, in particular—
a
risks arising from steps taken because of climate change (whether by governments or otherwise), and
b
opportunities relating to climate change.
3
The requirements which may be imposed by the regulations include, in particular, requirements about—
a
reviewing the exposure of the scheme to risks of a prescribed description;
b
assessing the assets of the scheme in a prescribed manner;
c
determining, reviewing and (if necessary) revising a strategy for managing the scheme's exposure to risks of a prescribed description;
d
determining, reviewing and (if necessary) revising targets relating to the scheme's exposure to risks of a prescribed description;
e
measuring performance against such targets;
f
preparing documents containing information of a prescribed description.
4
Regulations under subsection (3)(b) may, in particular, require—
a
that assets are assessed by reference to their exposure to risks of a prescribed description, and
b
that an assessment includes determining the contribution of the assets of the scheme to climate change.
5
The regulations may require the trustees or managers of the scheme to take into account—
a
different ways in which the climate might change, and
b
different steps that might be taken because of climate change.
6
Regulations under subsection (5) may require the trustees or managers of the scheme to adopt prescribed assumptions as to future events, including assumptions about—
a
the steps that might be taken for the purpose of achieving the Paris Agreement goal or other climate change goal, or
b
the achievement of the Paris Agreement goal or other climate change goal.
7
In complying with requirements imposed by the regulations, a trustee or manager must have regard to guidance prepared from time to time by the Secretary of State.
8
In this section “the Paris Agreement goal” means the goal of holding the increase in the average global temperature to well below 2°C above pre-industrial levels referred to in Article 2(1)(a) of the agreement done at Paris on 12 December 2015.
Pt. I modified (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), regs. 1, 2