Commenting on today’s announcement by the DWP of a consultation on climate risk – improving governance and reporting by occupational pensions schemes, Simon Jones, Head of Responsible Investment, Hymans Robertson, says:

“Pension funds will only contribute to the mitigation of climate risk through the reallocation of capital or by driving changes in behaviour. This continued focus on climate risk is welcome and we are particularly encouraged that this consultation looks beyond just disclosure to the underlying actions that trustees are expected to take in developing their approach. Looking beyond the risks associated with climate change to the potential opportunities to influence or create change must become a part of asset owners mindset.”