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”.