Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Paragraph: 43
Many schemes have already set net zero targets voluntarily.
Conclusion
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.
Paragraph Reference:
43
Government Response
Accepted
HM Government
Accepted
The Government agrees with the Committee’s recommendation. The Department for Work and Pensions welcomes the ambition of a growing number of schemes voluntarily setting net zero targets and will continue to encourage pension schemes to sign up. As acknowledged in this recommendation, net zero targets must not undermine trustees’ existing fiduciary duties When the Government encourages pension schemes to commit to net zero, it encourages them to do so in a way that works for them and the emerging evidence is that this is working. Approximately 85% of Defined Contribution (DC) pension savers are in a scheme with a net zero target. Six of the top ten Defined Benefit (DB) pension schemes, equating to assets of over £250bn have made net zero commitments. In total net zero signatory pension schemes within the Department for Work and Pension’s policy remit account for at least £380bn in assets under management and more than 19 million members. The pensions industry is showing great leadership in committing to robust and ambitious net zero targets. 29 Climate and investment reporting: setting expectations and empowering savers - GOV.UK (www.gov.uk) Government Response: Pension stewardship and COP26 7