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Select committee: Work and Pensions Committee

Sixth Special Report - Pension stewardship and COP26: Government Response to the Committee’s Fourth Report of Session 2021–22

Published 17 December 2021

Work and Pensions Committee Pension stewardship and COP26 Report on parliament.uk ↗

At a glance

The government's response

This document responds to Fourth Report - Pension stewardship and COP26.

This is the government's response, published 17 December 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government agrees with some recommendations (for example encouraging net zero targets and not incentivising divestment over stewardship) and does not agree with others, including a single lead Minister, a Pensions Regulator working group on net zero targets, and publishing direct investment data.

  • On net zero targets, the Government "agrees with the Committee's recommendation" that schemes consider setting them, and says it "will continue to encourage pension schemes to sign up", provided targets do not undermine trustees' existing fiduciary duties.
  • It "does not agree" that a single Minister should lead this work, and does not agree that the Pensions Regulator should set up a working group on net zero target guidance, citing industry collaboration and progress already made.
  • On mandating that default options align with climate goals, the Government "understands the intention" but is "concerned" that this might force immediate divestment and prevent trustees engaging with companies.
  • It expects to consult on UK draft Green Taxonomy criteria "in the first quarter of 2022, ahead of legislating by the end of 2022", and plans to publish a response to the call for evidence "in 2022".

Read the government's response ↗ Report an error

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