Pensions Policy Climate and Nature Targets 2025-06-23
2025-06-23
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The MP is concerned about UK pension savings still being invested in fossil fuels and deforestation-related activities, totaling around £388 billion. She notes that such investments could undermine the long-term financial security of savers in her constituency.
As a co-chair of the all-party parliamentary groups on sustainable finance and on global deforestation, I remain concerned that around £388 billion in UK pension savings is still invested in fossil fuels and deforestation-related activities. Will the Minister reassure me further that undermining the long-term financial security of savers in South East Cornwall is not the Government’s intention, and will he commit to reviewing this, including via the Pension Schemes Bill and the landmark pensions review?
My hon. Friend has been a powerful campaigner on this issue for some years, and she will know that larger pension schemes are now required to publish annual reports with climate-related disclosures. The evidence shows that around two thirds of pension funds have a net zero commitment in place, and we will be reviewing those regulations over the course of this year.
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Assessment & feedback
The Minister did not commit to reviewing specific issues related to fossil fuels and deforestation through the Pension Schemes Bill or other legislation.
Response accuracy
Q2
Partial Answer
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Context
The MP is concerned about ensuring that pension savers receive a good return on their investments while also supporting net zero targets.
It is very important that those who have pensions get a return, so that their pensions are beneficial. It is also important to ensure that net zero is delivered, because many people who have pensions want to see that happen. It is about getting a balance, so how will the Minister get that balance?
On the first part of the hon. Member’s question, I do not want to get the balance, because we want to make sure that savers get the absolute best value they can for every buck they save. I completely endorse his sentiment on that part; that is the very purpose of the Pension Schemes Bill that is coming through. On the second part of his question, I also endorse the point that he makes. When we look at those disclosures, we see that they set out a balance of judgments about the requirements on schemes, but they also provide greater transparency so that both individuals and the schemes themselves can take a view about the investments.
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Assessment & feedback
The Minister did not provide specific details on how to achieve the balance between pension returns and net zero commitments.
Response accuracy