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<p>The Government recognises that climate change is a defining national and international
emergency, and we have introduced three key measures to ensure that pension schemes
understand their responsibilities in responding to it.</p><p> </p><p>Firstly, since
January 2019 those running single employer occupational pension schemes have been
required to establish an effective system of governance including consideration of
environmental, social and governance factors related to investment assets in investment
decisions.</p><p> </p><p>Secondly, also since January 2019 schemes with 100 or more
members must carry out and document a risk assessment of their system of governance
including risks relating to climate change, the use of resources and the environment
and risks relating to the depreciation of assets as a result of regulatory change
(known as transition risk).</p><p> </p><p>Thirdly, as of 1st October, trustees of
occupational pension schemes must state their policy on how they take account of the
financial risks of climate change when developing their investment strategies. Defined
contribution pension schemes are also required to publish their policy online.</p><p>
</p><p>As the Minister for Pensions and Financial Inclusion I have spoken extensively
about the new requirements and made clear this Government’s expectations of pension
schemes.</p>
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