Pensions Minister, Guy Opperman, has welcomed the Financial Conduct Authority’s (FCA) outlining of a timeframe to align its climate risk reporting requirements with those in the Pension Schemes Bill.

The regulator, which sent confirmation of its plans to the minister in a letter, will require asset managers and FCA-regulated pension schemes to report on the climate risks of their assets in accordance with recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD).

Opperman said: “I whole-heartedly welcome the steps outlined by the FCA to ensure climate reporting requirements are rolled out across its regulated community.”

Measures included in the Pension Schemes Bill include requirements for calculating a pension scheme’s carbon footprint and assessing how the value of scheme assets might be affected by temperature increases.

The government said it had prioritised ensuring that occupational pension schemes are informed and empowered to take address climate risk due to the “significant impact” climate change could have on retirement savings.

Opperman commented: “The FCA’s commitment highlights the coordinated approach we are taking to address the dangers of climate change, while also using it to seize green opportunities.

“The UK was the first major economy to commit to reaching net zero by 2050 and it is vital we continue to build on this momentum.”

The Pension Schemes Bill, which also includes interim regulatory framework for defined benefit superfunds, is set for second reading on 7 October.

This legislation passed through the House of Lords in July after a third reading, with the government suffering defeat in four amendment votes during the report stage.

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