The Pension Schemes Act 2021: new duties for trustees and managers of pension fund trusts

The purpose of this article is to evaluate the new “climate duties” that are created for pension trustees under the Pension Schemes Act 2021. An evaluation is provided of the Act’s section on “climate change risk.” The article suggests that while more could have been done to enforce climate change risk amongst pension trustees, the regulatory regime should nevertheless be seen as a positive development. Indeed, the new statutory requirements for the increased management and reporting of climate change risk should assist in making this important environmental issue be considered as a “financially materially risk” throughout the sector.