The Occupational Pension Schemes (Climate Change Governance and Reporting) (Amendment, Modification and Transitional Provision) Regulations 2022

Amendment of the Principal Regulations

2.—(1) The Principal Regulations are amended as follows.

(2) In Part 1 of the Schedule (climate change governance etc. requirements)—

(a) in paragraph 15—

(i) at the end of sub-paragraph (b) omit “and”;

(ii) after sub-paragraph (b) insert—

“(ba) one portfolio alignment metric; and”;

(b) after paragraph 19, insert—

“19A.   Trustees must in each scheme year, as far as they are able—

(a) obtain the data required to calculate their selected portfolio alignment metric;

(b) use the data obtained to calculate that metric in relation to the scheme’s assets; and

(c) use the metric they have calculated to identify and assess the climate-related risks and opportunities which are relevant to the scheme.”;

(c) in paragraph 21, after “paragraphs 18” insert “, 19A”;

(d) in paragraph 26—

(i) in the definition of “additional climate change metric”, at the end, insert “or a portfolio alignment metric”;

(ii) after the definition of “greenhouse gas” insert—

““portfolio alignment metric” means a metric which gives the alignment of the scheme’s assets with the climate change goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels;”.

(3) In Part 2 of the Schedule, (information to be included in a report under regulation 6) in paragraph 27(n), after “paragraphs 18” insert “, 19A”.