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01 February 2022

IPE: Joint effort delivers template for pension funds’ TCFD duties


The Investment Association (IA), Pensions and Lifetime Savings Association (PLSA) and the Association of British Insurers (ABI) have produced a template to help UK pension schemes deliver on new climate change reporting-related requirements they face.

The template provides a standardised set of data that pension schemes need to calculate emissions data required under the Climate Change Governance and Reporting Regulations, and associated statutory guidance.

The requirements are based on the Taskforce for Climate-related Financial Disclosures (TCFD) framework.

“Collaboration will be vital to tackling the climate crisis, and delivering changes across the investment chain,” said Joe Dabrowski, deputy director of policy at the PLSA.

“We are pleased to have worked closely with our industry peers at the IA and ABI to bring our pension scheme members the Carbon Emissions Template,” he said, adding: “Complementing the PLSA’s existing library of responsible investment and stewardship guidance, the template will help schemes of all types and size with standardised reporting and to comply with the TCFD regulations.”

The template contains separate data specifications for segregated mandates and pooled funds, with data to be provided for pension scheme year ends on or after 31 December 2021.

Galina Dimitrova, director, investments and capital markets at the IA, said the association had committed to work closely with its members and their pension fund clients to help them meet their own TCFD requirements.

“This template provides for the consistent and dependable transmission of TCFD data, using a proven technological solution already deployed by asset owners and investment managers,” she said.

“It will help make the process of calculating carbon emissions more straightforward and efficient, and will provide clients with key information to help them assess the impact of their investment decisions.”

The template will also help insurers and investment managers with their obligations under rules set by the Financial Conduct Authority.

The working group that developed the carbon emissions template is planning to start the second phase of its work in the second quarter of 2022 to look at implementation experiences, additional metrics, more recent regulatory developments, and emerging best practice. 

A glance at the template

carbon emissions template

IPE



© IPE International Publishers Ltd.


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