Source · Select Committees · Work and Pensions Committee
Recommendation 13
13
As a large scheme the Local Government Pension Scheme (LGPS) could be well placed to...
Conclusion
As a large scheme the Local Government Pension Scheme (LGPS) could be well placed to demonstrate and develop best practice in pension scheme governance, including on climate change. The Minister for Pensions and Financial Inclusion told us that, in his view, the Local Government Pension Scheme should be run by the Department for Work and Pensions rather than the Ministry for Housing Communities and Local Government. This is an interesting view. We are not Pension stewardship and COP26 33 convinced that DWP setting pension policy for the whole sector while running one of the largest pension schemes would be straightforward or desirable given the inherent conflicts of interest. (Paragraph 48) Investment and stewardship
Government Response
Acknowledged
HM Government
Acknowledged
The Government’s Net Zero Strategy,35 which was published on 19 October, provides a cross-economy climate roadmap on the UK’s transition to net zero by 2050, including the action government will take to keep the UK on track for meeting its carbon budgets and 2030 Nationally Determined Contributions (NDC).36 The Net Zero Strategy outlines measures to transition to a green and sustainable future, helping businesses and consumers to move to clean power, supporting hundreds of thousands of jobs and leveraging up to £90 billion of private investment by 2030. It sets a clear direction and gives the wider financial industry the certainty they need to invest, grow, and make the UK home to new ambitious projects. The Net Zero Strategy also shows indicative pathways to meeting carbon budgets in terms of how it sees different sectors contributing to emission reductions to meet legislated budget levels up to 2037. The sector chapters in the Net Zero Strategy set out in detail the policies to deliver these pathways. For example, in relation to the Power sector, the Government will accelerate deployment of low-cost renewable generation and will consider whether broader reform to market frameworks are needed to unlock the full potential of low carbon technologies to achieve net zero.37