Sackers comments on EAC’s Greening Finance report
Stuart O’Brien, partner, comments on the latest report published by the Environmental Audit Committee (EAC), “Greening Finance: embedding sustainability in financial decision making“.
The report contains the final findings of the EAC’s green finance inquiry and, amongst other recommendations, calls for the FCA to publish guidance on the financial risk of climate change, citing a “worrying disparity” between TPR and the FCA guidance for pension schemes in this area.
O’Brien describes the proposal for a change in the law to require an active search for beneficiaries’ views as “problematic”, and argues that the MPs have failed to recognise key differences between DB and DC schemes.
“A proposal for mandatory climate risk reporting for large asset owners, including pension funds, was to be expected at some point, but if it applies to all schemes it could be a challenge to implement for the smaller pension funds.”
Read the full article in Professional Pensions