Home / Sources / Select Committees / Work and Pensions Committee / Pension stewardship and COP26
Index live
Select Committee · Work and Pensions Committee

Pension stewardship and COP26

Status: Closed Opened: 29 Apr 2021 Closed: 2 Feb 2022 15 recommendations 5 conclusions 1 report

The UK hosted the 26th UN Climate Council Conference of Parties - COP26 - in Glasgow between 1 and 12 November 2021. In March 2021, the Minister for Pensions and Financial Inclusion announced that “world leading regulations” will come into force ahead of COP26, following the Government’s consultation, Taking action on climate risk: improving governance … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Fourth Report - Pension stewardship and COP26 HC 238 30 Sep 2021 20 Responded

Recommendations & Conclusions

3 items
10 Conclusion Fourth Report - Pension stewardship and… Acknowledged

Many schemes have already set net zero targets voluntarily.

Many schemes have already set net zero targets voluntarily. We encourage other schemes to consider whether they should also set net zero targets. While we recognise that any target must not undermine trustees’ fiduciary duties, we believe that in many cases these will be aligned. Read more

Government response AI summary
The government agrees with the committee's encouragement for schemes to set net zero targets, welcoming the ambition of schemes already doing so and noting that a significant proportion of DC and DB assets are now covered by net zero commitments.
Read full response →
Department for Work and Pensions
18 Conclusion Fourth Report - Pension stewardship and… Acknowledged

The charge caps on default pension saving products used for auto-enrolment are an important part...

The charge caps on default pension saving products used for auto-enrolment are an important part of ensuring good value for savers who have not made an active decision about where their pension should be invested. However, we support the Government’s decision to review whether there are other charging structures which … Read more

Government response AI summary
The government notes the committee's concern regarding charge caps and confirms its support for reviewing alternative charging structures to facilitate long-term investments while protecting savers' interests.
Read full response →
Department for Work and Pensions
19 Conclusion Fourth Report - Pension stewardship and… Acknowledged

The purpose of pension schemes setting net zero targets is not solely that the schemes...

The purpose of pension schemes setting net zero targets is not solely that the schemes themselves should be net zero aligned, but that they should make an impact in reducing the real economy’s contribution to climate change. Good stewardship is a method of achieving that change. Last year the Department … Read more

Government response AI summary
The government acknowledges the importance of good stewardship and reports that the Taskforce on Pension Scheme Voting Implementation, set up by the Minister for Pensions, has published its report with 24 recommendations, six of which have been taken forward in DWP's draft stewardship guidance.
Read full response →
Department for Work and Pensions

Oral evidence sessions

2 sessions
Date Witnesses
14 Jul 2021 Emma Varley · Department for Work and Pensions, Guy Opperman MP · Department for Work and Pensions, Pete Searle · Department for Work and Pensions View ↗
30 Jun 2021 Andrew Ninian · Investment Association, James Alexander · UK Sustainable Investment and Finance Association, Mark Fawcett · Nest, Morten Nilsson · BT Pension Scheme, Paul Bucksey · Smart Pension UK, Sam White · Aviva, Tony Burdon · Make My Money Matter View ↗

Who gave evidence

10 witnesses
WitnessOrganisationSessions
Andrew Ninian · Director of Stewardship and Corporate Governance Investment Association 1
Emma Varley · Head of DC and International Private Pensions Pol… Department for Work and Pensions 1
Guy Opperman MP · Minister for Employment Department for Work and Pensions 1
James Alexander · Chief Executive UK Sustainable Investment and Finance Association 1
Mark Fawcett · Chief Investment Officer Nest 1
Morten Nilsson · Chief Executive Officer BT Pension Scheme 1
Paul Bucksey · Managing Director Smart Pension UK 1
Pete Searle · Director, Private Pensions and Arm’s-Length Bodies Department for Work and Pensions 1
Sam White · Group Sustainability Director Aviva 1
Tony Burdon · CEO Make My Money Matter 1