On the go: Thirty per cent of defined benefit pension trustees think efforts to push their schemes towards net zero emissions “isn’t relevant to them”, according to new research.
The industry has been subject to regular lobbying on the issue, including from campaigning groups such as Make My Money Matter, which has been vocal in its efforts to push schemes to adopt net zero targets.
A survey published by LCP on June 10 did acknowledge an increase in the number of schemes engaging with net zero targets. Four-fifths of schemes of more than £5bn in size told the consultancy that they either have or are working on a net zero target, compared with just over 30 per cent last year.
There has also been an increase in the proportion of DB schemes that have considered the impact of climate change on their covenant, up to 70 per cent of schemes from 50 per cent in 2021.
Schemes that deemed net zero efforts irrelevant, however, were viewed across the boundaries of scheme sizes.
Meanwhile, fewer smaller schemes considered the impact of climate change on covenant this year. LCP speculated that this may be as a result of cost pressures, an absence of regulatory guidance, or preoccupation with other duties.
LCP partner Mary Spencer said: “With discussions on climate change dominating the headlines, government commitments and new requirements for larger pension schemes, it’s little wonder that many people are experiencing ‘climate fatigue’.
“Against this backdrop, it’s a little surprising that more pension schemes didn’t cite climate risk as a top priority over the next year.”
In June, the Make My Money Matter campaign published a list of the 20 largest UK schemes to have allegedly not set net zero targets, including the Lothian Pension Fund, the Zurich Financial Services UK Pension Scheme, and the Shell Contributory Pension Fund.
It transpired that one inclusion on the list — the BMW (UK) Operations Pension Scheme — has in fact set a net zero target, following an enquiry by Pensions Expert.
