Opinion: DWP is getting tough on pensions
The DWP is urgently consulting on new mandatory requirements for large DB and DC pension schemes. This will require all schemes with at least £1bn of assets to adapt their governance and risk reporting processes to be in line with the 11 recommendations of the international industry-led Task Force on Climate-related Financial Disclosures (TCFD).
These new rules would apply to both DB and DC schemes and make the UK the first major economy to legally require pension schemes to implement the TCFD recommendations. Although initially only for the largest pension schemes, this comes as part of the UK government’s commitment for the UK to be a net zero greenhouse gas (GHG) emitter by 2050; so the DWP has made it clear this could apply to all schemes by 2024.