Source · Select Committees · Work and Pensions Committee
Recommendation 14
14
Paragraph: 56
There are a limited number of suitable green assets in which pension schemes can invest.
Conclusion
There are a limited number of suitable green assets in which pension schemes can invest. That means that there is a risk of a “green asset bubble” in the short term, as the market for these products develops. It is important that the Government continues to support the development of products, such as green gilts, to mitigate this risk.
Paragraph Reference:
56
Government Response
Rejected
HM Government
Rejected
The Government does not agree with the Committee’s recommendation. It would not be practically feasible to publish information on direct investments. It is typical for an occupational pension scheme to have thousands of stocks in just one fund alone and for that fund to only represent a percentage of their investment portfolio. However, the Government acknowledges the importance of assessing and reporting on the pension investment landscape of the UK and therefore brought in the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 to drive assessment and disclosure of levels of climate risk arising from investments.