Commons Sense

House of Commons · Ministers' Questions

Pension Schemes Bill: Net Zero Carbon Emissions

Monday 19 October 2020 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Christian Wakeford inquired about steps through the Pension Schemes Bill to support the Government's commitment to net zero carbon emissions by 2050.
  • The Minister affirmed agreement that more needs to be done to ensure large financial institutions contribute to meeting climate change targets set out in the Paris agreement.
  • Jack Dromey commended the Government for incorporating climate change commitments into legislation for pension funds, urging translation of ambitions into action.

Topics (select to filter)

Questions & Answers

Q1 Christian Wakeford Lab Bury South
Climate Benefits & Welfare
Context

The question pertains to steps taken by the government to ensure pension schemes support environmental goals. The Labour MP questions how legislation is addressing climate change targets.

Question

What steps she is taking through the Pension Schemes Bill to support the Government's commitment to net zero carbon emissions by 2050?

Answer from Guy Opperman

As my hon. Friend knows, we want safer, better and greener pensions. This Government were the first in a G7 country to legislate for net zero by 2050. We lead the way on environmental regulation of pensions, and we are introducing transparency of climate-related financial disclosures in the Pension Schemes Bill that require schemes to take account of climate change goals, including net zero.

Answered
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Q2 Christian Wakeford Lab Bury South
Climate
Context

Following initial question, the Labour MP emphasizes climate change as the single biggest threat to mankind and the planet. He seeks more action from large financial institutions including pension funds.

Question

I thank the Minister for his response. Climate change is the single biggest threat not only to mankind, but to the planet. Does he agree with me that if we are to meet the climate change targets set out in the Paris agreement, more needs to be done to ensure that large financial institutions, including institutional investors such as pension funds, channel more investment into areas that do not actively harm our environment and contribute to climate change?

Answer from Guy Opperman

I agree with my hon. Friend. The Government are setting a regulatory framework and enabling pension funds to make sustainable investments happen, whether that is through the Bill itself or through our illiquid investments proposals, which will see renewables, hydrogen and potentially new nuclear. We do not believe in divestment, but we welcome the change in investment practice that is already beginning to take place, although we want to see more.

Answered
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Q3 Jack Dromey Lab
Climate Benefits & Welfare
Context

The Labour MP highlights the importance of translating legislative ambitions into action, especially in light of David Attenborough's call to move away from fossil fuels. He proposes a collaborative approach involving pension funds.

Question

With David Attenborough urging pension funds to move away from fossil fuels, it is hugely welcome that the Government have joined Labour to incorporate in legislation, for the first time ever, climate change commitments on pension funds. Now we must translate our ambitions into action. Previously, the Minister has received positively our proposal for a pension fund summit. Will he now agree to work with us—across party and bringing together the world of pensions to save our planet—to organise a cross-party climate change summit, because this is the biggest form of investment potentially worldwide in climate change pension funds?

Answer from Guy Opperman

As the hon. Gentleman knows, we are already working with a large number of pension funds and also with companies. We all want to see a safer, better and greener pension system. I am happy to work with him on an ongoing basis, and I am happy to reach out on a collaborative basis on this particular issue, which matters to all of us.

Partly answered

Not addressed: The specific commitment to organize the cross-party climate change summit was not directly addressed.

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