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The UK’s Pensions Regulator (TPR) wants to develop a template to help the industry prepare for the government’s goal to transition to a net-zero economy by 2050.
TPR said it would create a working group with industry stakeholders and professional bodies to develop and test a voluntary template for occupational pension schemes, drawing on the work of the Transition Plan Taskforce (TPT)
Pressure is mounting on pension funds around the world to take more account of climate change risks, with campaigners calling on trustees to make sustainable investment decisions and use their voting power to push companies they invest in to go green. They also want governments to consider tighter regulation to force transparency.
TPR noted that Britain’s ruling Labour party promised to mandate transition plans aligned to the Paris Agreement goal of limiting global temperature rises to 1.5C in its pre-election manifesto.
TPR said it wanted to work with industry ahead of any legislation to help pension trustees manage transition risks, such as the potential for a fall in the value of investments in fossil fuels. TPR said transition plans could also help trustees capitalise on investment opportunities and promote sustainable investment.
The Make My Money Matter campaign has said that £88bn of UK pension savers’ money is invested in fossil fuels, but the industry could invest £1.2tn into renewable energy and climate solutions by 2035. It said two-thirds of UK pension holders support their funds investing in renewables.
“Sustainability initiatives should improve investment governance practices and help schemes make good long-term strategic decisions,” said Julian Lyne, TPR’s interim executive director of market oversight and chair of the planned working group.
TPR said it has been working to raise awareness among trustees of the benefits of transition plans, adding that they have the potential to help shape investment decisions in the interests of savers.
A TPR review last year of climate-related disclosures by pension trustees found that more than 60% of reports had some form of net-zero goal.
TPR said the template would be based on the framework and guidance developed by the TPT and would be presented to the government later this year.
This page was last updated July 10, 2025
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Emma Thomasson is a British journalist, consultant and trainer based in Berlin. She is an expert in economics, politics, business and technology. She previously worked for Reuters as a correspondent and bureau chief in Germany, Switzerland, the Netherlands, South Africa and the UK.
