ClientEarth has submitted a claim for judicial review against the Royal Borough of Kensington and Chelsea (RBKC) and Hymans Robertson over the assessment of climate-related financial risk, and decisions about employer contributions for the borough’s Local Government Pension Scheme (LGPS) fund.

The judicial review request has been filed against RBKC as administering authority of the RBKC Pension Fund and Hymans Robertson as actuary.

It argued that that authority and actuary did not meet minimum public law standards when assessing and explaining climate-related financial risk in the fund’s 2025 triennial valuation and in related decisions about employer contributions.

ClientEarth said RBKC had “significantly” reduced employer contribution rates, down to 0 per cent for its own employees, and argued that basing contribution decisions on a valuation it alleged did not properly account for material climate risk put the long-term funding of the scheme at risk.

The judicial review claim centres on the legal adequacy of the climate risk assessment used in the valuation process, alleging that the assessment used fell short of the standards set by relevant LGPS materials.

This included advice issues under the LGPS statutory framework and Hymans Robertson’s published approach to climate risk analysis.

ClientEarth said it understood that both RBKC and Hymans Robertson intended to defend the claim.

“This case gets to the heart of how public pension funds assess climate-related financial risk – one of the biggest risks facing our financial system,” commented ClientEarth lawyer, Alex Bennett.

“LGPS funds carry long-term obligations to their members, and decisions taken today can shape funding resilience for decades.

“ClientEarth is asking the court to review whether Kensington and Chelsea Council, and its actuary Hymans Robertson, met the minimum legal standards required when assessing and explaining climate risk in the 2025 valuation and the related contribution decision.

“The case is not asking the court to set contribution rates. It is about whether the legal process for assessing material long-term financial risks was followed properly.”

A Kensington and Chelsea Council spokesperson said: “ClientEarth has issued an application for judicial review relating to the administration of the RBKC Pension Fund.

“The council is considering the matters raised carefully and it would not be appropriate to comment further while this matter is subject to litigation.”

A Hymans Robertson spokesperson stated: "I am afraid we cannot comment on this matter due to client confidentiality, given it is specifically related to a client."

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