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<p>The Governments wants to support trustees in making responsible investment decisions.
However, it does not seek to direct pension schemes to invest or divest in any particular
way.</p><p>We recognise that climate change is a key national and international issue
and we have made sure that pension schemes understand their role responding to its
effects. In September 2018, following extensive consultation with the pensions industry,
this Government laid regulations to clarify that trustees should be taking account
of the financial risks of climate change when developing their investment strategies.
The regulations come into force from October this year. The FCA are consulting on
corresponding provisions for workplace personal pension schemes. As the Minister for
Pensions and Financial Inclusion I have spoken extensively about the new requirements
and the Government expectations of pension schemes, including at the Westminster Hall
debate regarding Pension Funds: Financial and Ethical Investments on the 22 May 2019:</p><p>“For
too long there has been a perception by too many trustees -I am happy to clarify this
as a Government Minister- that the environmental practices of the firms they invest
in are purely ethical concerns, which they do not need to worry about: that is utterly
wrong. Aside from the ethical considerations, there are real financial risks resulting
from climate change. With the long-term horizons of pension investing, trustees must
now consider that when they set out their investment strategies. Trustees who do not
consider those matters will be breaching their statutory and potentially their fiduciary
duties not only to current but future members.”</p><p>The full debate can be viewed
here:</p><p><a href="https://hansard.parliament.uk/commons/2019-05-22/debates/D3194408-7581-4635-AEDC-6D22AD6F0EBC/PensionFundsFinancialAndEthicalInvestments"
target="_blank">https://hansard.parliament.uk/commons/2019-05-22/debates/D3194408-7581-4635-AEDC-6D22AD6F0EBC/PensionFundsFinancialAndEthicalInvestments</a></p><p>
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