The Financial Stability Board’s recommendations on climate-related governance have moved a step closer to becoming statutory guidance after the Pensions Regulator, TPR, announced the formation of an industry working group to create best practice guidance for pension funds.
The Pensions Climate Risk Industry Group (PCRIG) will draft guidance for trustees on climate risk using recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) covering governance, risk management, scenario analysis and disclosure. Following public consultation, the guidance will be included in TPR’s governance code.
Stuart O’Brien, partner of Sackers, will lead the working group which will also include representatives from TPR, the Department for Work and Pensions (DWP), and the Department for Business, Energy and Industrial Strategy (BEIS), as well pension schemes, investment managers, data providers and other groups.
PCRIG’s formation builds on the UK’s multi-agency approach to governance, ESG and climate change which has accelerated sharply over recent months. The UK investment community now face three major initiatives for 2020:
- For asset managers: a revised Shareholders Rights Directive (SRDII) from the FCA;
- For pension schemes: new Occupational Pension Scheme Investment Regulations from DWP and tPR; and
- For both: a completely overhauled Stewardship Code from the FRC.
Minerva – integrated TCFD straight out of the box
Over the past year, the Minerva team has been busy upgrading our platform to help investors get ready to meet the 2020 Stewardship Challenge. Minerva’s sustainability research framework, launched in 2015, supports TCFD-compliant climate change voting policies, fund-specific reporting. Now, as part of the Solactive family Minerva can offer fully customised ESG benchmark creation.
For a no-obligation discussion about how Minerva’s approach to sustainability governance can help your fund meet their investment goals, say firstname.lastname@example.org. Alternatively, if you are considering an RFP, you can submit your request online. We look forward to hearing from you.