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UK pensions: clearer guidance on trustees’ fiduciary duties for climate and ESG sought; government and the Pensions Regulator reviewing post-FMLC as TCFD disclosures fail to change investment behaviour

Published on: 22 February 2024

Published by a Law360 reporter
Legal News
Article summary

On 21 February 2024, advocates for sustainable finance told the parliamentary Work and Pensions Committee that the Pensions Regulator should issue additional guidance to spur climate-positive investment. The Committee is examining whether trustees’ fiduciary duties around pension investment choices ought to be updated, as the UK pursues broader plans to cut carbon emissions to net zero by 2050. In 2021, the government brought in rules for UK pension schemes, obliging them to produce disclosures on the financial risks posed by climate change. The initial wave of reports appeared in July 2022. Yet industry specialists argued that the framework has scarcely prompted a material shift in investment behaviour to date, according to sector voices...

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