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<p>The Government 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> </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.</p><p>As the Minister
for Pensions and Financial Inclusion I have spoken extensively about the new requirements
and the Government expectations of pension schemes, including during the Westminster
Hall debate regarding Pension Funds: Financial and Ethical Investments on the 22 May
2019:</p><p> </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>
</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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