Commons Sense

House of Commons · Ministers' Questions

Pensions Policy: Climate and Nature Targets

Monday 23 June 2025 · 2 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Anna Gelderd raised concerns about UK pension savings being invested in fossil fuels and deforestation, totaling around 388 billion.
  • Jim Shannon emphasized the need for a balance between ensuring pension returns and achieving net zero emissions.
  • The Minister highlighted that larger pension schemes are required to publish annual reports with climate-related disclosures and that two thirds of pension funds have net zero commitments.

Topics (select to filter)

Questions & Answers

Q1 Anna Gelderd Lab South East Cornwall
NHS Climate
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.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)

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.

Partly answered

Not addressed: The Minister did not commit to reviewing specific issues related to fossil fuels and deforestation through the Pension Schemes Bill or other legislation.

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Q2 Jim Shannon DUP Strangford
Climate Benefits & Welfare
Context

The MP is concerned about ensuring that pension savers receive a good return on their investments while also supporting net zero targets.

Question

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?

Answer from The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)

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.

Partly answered

Not addressed: The Minister did not provide specific details on how to achieve the balance between pension returns and net zero commitments.

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