16 November 2022 – Paris Alignment Forum online all-stakeholder event

Reflections on the rollout of TCFD-aligned reporting, one year on.

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Pensions for Purpose was delighted to invite Paris Alignment Forum members to this online all-stakeholder member-only event on 16 November 2022.

In this session, we reflected on the experiences of large (£5bn plus) corporate pension funds and all authorised DC schemes, who from 1 October 2021, have been subject to the climate change governance regulations to publish a report in alignment with the Taskforce for Climate Related Financial Disclosures (TCFD) framework within seven months of their financial year-end.

The Pensions Regulator (TPR) has been collating climate reports from the largest corporate pension schemes and DC schemes over the past year. Brendan Walshe, Principal, Investment Regulatory Policy, Analysis and Advice, at TPR, shared their early views of the reports, and give advice to smaller corporate pension schemes on how to prepare for reporting, as their deadlines approach.

Jeremy Hughes, Senior Pensions Secretary of the Local Government Pension Scheme (LGPS) Advisory Board, then talk about the Department for Levelling Up, Housing and Communities' consultation 'Governance and reporting of climate change risks' for the LGPS and the proposed regulations for funds to assess, manage and report on climate-related risks, in line with the recommendations of the TCFD.

This was then followered by a Q&A moderated by Karen Shackleton of Pensions for Purpose

We then move to breakout rooms of mixed stakeholders, led by our sponsors Invesco and Redington, to discuss the following questions:

  1. What are the main challenges for pension funds looking to prepare a climate report in line with TCFD recommendations & how might these be mitigated?
  2. Who should asset owners turn to (e.g., investment consultants, climate scientists, modelling experts) for expert analytical advice on climate reporting i.e., gathering data, implied temperature rise and scenario analysis?
  3. How can pension funds use the findings to improve their climate action strategies, whilst still meeting their fiduciary responsibilities?

In the usual way, we then regroup and our sponsors shared insights from the breakout room discussions before Jeremy Hughes and Brendan Walshe wrapped the session up.

Agenda

The agenda for this online interactive discussion was the following:

Welcome from Pensions for Purpose and housekeeping.

Keynote presentation from Jeremy Hughes, LGPS, and Brendan Walshe, TPR.

Mixed breakout rooms moderated by our forum sponsors, Redington and Invesco, to discuss key questions.

Return to main meeting – to share insights.


Who was this event for?

Anyone involved in the governance or management of pension fund assets or other pools of assets, and climate experts. For example, trustees of corporate defined benefit and defined contribution pension plans, LGPS pensions managers and committee members, in-house pension teams, legal, actuarial and investment advisers, asset managers, other investment service providers and climate-research groups.
Speaker biographies

Jeremy Hughes, Senior Pensions Secretary, Local Government Pension Scheme Advisory Board

Jeremy HughesJeremy joined the pension's team at the Local Government Association after five years in the LGPS Policy Team at the Department of Levelling Up, Housing and Communities (DLUHC), where he was responsible for a range of policy development and stewardship issues, including exit pay reform and taking through a number of amending statutory instruments (on mergers and benefit changes). Before working in the pensions team, he held roles in the Civil Service , mainly focused on local government finance and policy. He advised Ministers on challenges as diverse as social care funding, public sector property management and local audit reform. He was also a PSC trade union member and activist during his time in that department. Presently, Jeremy supports the LGA's Head of Pensions and is Deputy Secretary to the Local Government Pension Scheme Advisory Board and its various sub-committees.

Brendan Walshe, Principal – Investment, The Pensions Regulator

Brendan WalsheBrendan joined The Pensions Regulator (TPR) in March 2015 and is a Principal within the Regulator's Investment Consulting Team. In this role, Brendan acts as an adviser at TPR and gives advice on DB investment and funding strategies and contributes to the regulation of DC pension schemes. Brendan also provides specialist investment input to TPR's regulatory policy and publications, including DB and DC Codes of Practice and regulatory guidance and a range of blogs. Recently this has included developing of TPR's climate guidance, an interim regime for DB Superfunds, to the CMA review and the review of pension scheme TCFD reports. Before he joined the regulator, Brendan worked with leading consultancies advising private and public sector clients on pension scheme investment, risk management and governance. Brendan speaks regularly at industry conferences and contributes to industry publications. Brendan is a Fellow of the Institute of Actuaries and has contributes to a range of Institute working parties.

Paris Alignment Forum

The Paris Alignment Forum was established by Pensions for Purpose to help pension funds and other asset owners on their journey towards alignment with the goals of the Paris Agreement. We do this by sharing climate-related thought leadership written by our Influencer members (asset managers, consultants and lawyers), by running free training workshops for trustees and by engaging in industry-wide conversation through our quarterly all-stakeholder and asset-owner events. To join the Paris Alignment Forum please email Karen Shackleton.

Pensions for Purpose

Pensions for Purpose exists as a bridge between asset managers, pension funds and their professional advisers, to encourage the flow of capital towards impact investment. Our aim is to empower pension funds to seek positive impact opportunities and mitigate negative impact risks. For membership information, please email Charlotte O’Leary.

To the extent that anything on this website constitutes a financial promotion it is exempt from the general prohibition in S21 of FSMA on the basis that the site is only intended for investment professionals as such term is defined in S19 of the Financial Promotions Order. Please note that Pensions for Purpose does not provide consultancy services, advice or personal recommendations on any of the investment opportunities mentioned on the platform. We curate content written by Influencer members and do not endorse any underlying funds.

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