Source · Select Committees · Work and Pensions Committee
Recommendation 19
19
Paragraph: 69
The purpose of pension schemes setting net zero targets is not solely that the schemes...
Conclusion
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 for Work and Pensions set up the Taskforce on Pension Scheme Voting Implementation to make recommendations to drive better voting policies and vote reporting. We will be looking closely at its recommendations.
Paragraph Reference:
69
Government Response
Not Addressed
HM Government
Not Addressed
The Minister for Pensions and Financial Inclusion set up the TPSVI in December 2020, to address problems in the voting of equity shares by pension schemes. The Taskforce focused on two areas to help strengthen pension schemes’ stewardship activities: (1) How to facilitate more voting and better-quality voting by occupational pension schemes by encouraging them to set voting policies. (2) Making recommendations relevant to the changes in behaviours needed from asset managers and service providers to meet this objective. The Taskforce published its report on the 20th September 2021.42 It includes 24 recommendations for Government, regulators, and industry. Nine recommendations are for DWP, six of which have been taken forward in DWP’s consultation on draft stewardship guidance. Moreover, the DWP is setting up a government-led working group to progress the remainder of the recommendations. 42 “The Report of the Taskforce on Pension Scheme Voting Implementation: Recommendations to Government, Regulators and Industry”, September 2021.