Oral Answers to Questions

Ruth Edwards Excerpts

Monday 27th January 2020 Commons Chamber

[Jerome Mayhew (Broadland) (Con)]

1. What steps she is taking to work with pension funds to encourage them to make investment decisions that help tackle climate change.

[Ruth Edwards (Rushcliffe) (Con)]

3. What steps she is taking to work with pension funds to encourage them to make investment decisions that help tackle climate change.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

With over £1.6 trillion in assets, UK occupational pension schemes have a significant role to play in supporting the Government’s commitment to net zero by 2050. Our environmental, social and governance regulations, introduced by this Conservative Government in October 2019, mean that schemes are now required to disclose their policy on climate change. In March, we intend to publish game-changing guidance on climate-related financial disclosure. I have written to the 50 largest schemes in the country to urge them to act on their investment duties and to tackle climate risk.

--- Later in debate ---

[Guy Opperman]

I welcome my hon. Friend to the House, and I am happy to meet him—that will happen very soon. His constituent should understand that Parliament collectively required a £30,000 threshold whereby no individual can withdraw their defined benefit pension without first receiving advice from an independent financial adviser. As a Conservative, I am of course very keen for individuals to make their own decisions about their own money, but this decision was made and it ensured that an individual is protected from a decision without advice.

[Ruth Edwards]

As my constituents in Rushcliffe save for their retirement, they want to know about the potential financial risk to their pension pots from climate change and that their savings are helping to tackle, rather than embed, the climate crisis. My hon. Friend has done a lot to ensure that ESG plays a key part in pension providers’ decision making. Will he consider requiring them to disclose their exposure to climate-related risk to their members?

[Guy Opperman]

It is a pleasure to welcome my hon. Friend to the House. She obviously knows that Ken Clarke was a legend to us all, and I am sure that she will be a great champion on behalf of the citizens of Rushcliffe.

Sadly, too few schemes are making any form of disclosure about their environmental investments and their climate risk, and I am determined to change that. Every private occupational pension holder should be able to know, individually, how their fund is invested and be able to hold the trustees and asset managers to account.