A new template to assist pension schemes in calculating their carbon emissions has been launched collaboratively by the Association of British Insurers, the Investment Association, and the Pensions and Lifetime Savings Association.
The carbon emissions template provides a standardised set of data that pension funds need to calculate their emissions and will help them better understand the environmental impact of their investments.
The template was developed in response to new requirements imposed on pension funds to collect data and calculate their emissions as a first step toward identifying and assessing the climate-related risks and opportunities they face.
Investment Association director investments and capital markets Galina Dimitrova says: “TCFD-aligned disclosures are a crucial step forward to managing the impact of climate change. The IA supports all efforts in making TCFD mandatory across the UK economy and we have committed to work closely with our members and their pension fund clients to help them meet their own TCFD requirements. Clear and accessible information about carbon emissions is a vital part of this.
“This template provides for the consistent and dependable transmission of TCFD data, using a proven technological solution already deployed by asset owners and investment managers. It will help make the process of calculating carbon emissions more straightforward and efficient, and will provide clients with key information to help them assess the impact of their investment decisions.”
Association of British Insurers director of policy long-term savings and protection Yvonne Braun says: “People are increasingly aware of the power of pensions in helping tackle climate change. The new template will standardise how emissions are calculated, allowing trustees and customers to clearly see and compare the environmental impact their investments are making. This will also help customers who want to make investment decisions based on reducing their carbon footprint.”
Pensions and Lifetime Savings Association deputy director of policy Joe Dabrowski says: “Collaboration will be vital to tackling the climate crisis, and delivering changes across the investment chain. We are pleased to have worked closely with our industry peers at the Investment Association and Association of British Insurers to bring our pension scheme members the Carbon Emissions Template. Complementing the PLSA’s existing library of responsible investment and stewardship guidance, the template will help schemes of all types and size with standardised reporting and to comply with the TCFD regulations.”