天美影院

Statutory instruments
2022 No.
Pensions

Made	***
Laid before Parliament	***
Coming into force	1 October 2022

The Secretary of State for Work and Pensions, in exercise of the powers conferred by sections 41A(1), (2), (3)(a) and (b), (4), (5) and (6), 41B(1) and (2), 124(1) and 174(2) and (3) of the Pensions Act 1995^{[footnote 1]}, makes the following Regulations.

In accordance with section 120(1) of the Pensions Act 1995, the Secretary of State has consulted such persons as the Secretary of State considers appropriate.

Citation, commencement, extent and interpretation

1.鈥�(1) These Regulations may be cited as the Occupational Pension Schemes (Climate Change Governance and Reporting) (Amendment, Modification and Transitional Provision) Regulations 2022 and come into force on 1st October 2022.

(2) These Regulations extend to England and Wales and Scotland.

(3) In these Regulations 鈥渢he Principal Regulations鈥� means the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021^{[footnote 2]}.

Amendment of the Principal Regulations

2.鈥�(1) The Principal Regulations are amended as follows.

(2) In the Schedule, Part 1 (climate change governance etc. requirements)鈥�

(a) in paragraph 15鈥�

(i) at the end of sub-paragraph (b) omit 鈥渁nd鈥�;
(ii) after sub-paragraph (b) insert鈥�

鈥�(ba) one portfolio alignment metric; and鈥�;

(b) after paragraph 19, insert鈥�

鈥�19A. Trustees must in each scheme year, as far as they are able鈥�

(a) obtain the data required to calculate their selected portfolio alignment metric;
(b) use the data obtained to calculate that metric in relation to the scheme鈥檚 assets; and
(c) use the metric they have calculated to identify and assess the climate-related risks and opportunities which are relevant to the scheme.鈥�;

(c) in paragraph 21, after 鈥減aragraphs 18鈥� insert 鈥�,19A鈥�;

(d) in paragraph 26鈥�

(i) in the definition of 鈥渁dditional climate change metric鈥�, at the end, insert 鈥渙r a portfolio alignment metric鈥�;
(ii) after the definition of 鈥済reenhouse gas鈥� insert鈥�

鈥溾�減ortfolio alignment metric鈥� means a metric which gives the alignment of the scheme鈥檚 assets with the climate change goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels;鈥�.

(3) In the Schedule, Part 2, paragraph 27(n) (metrics information to be included in a report under regulation 6), after 鈥減aragraphs 18鈥� insert 鈥�, 19A鈥�.

Modification of the Principal Regulations

3.鈥�(1) The following modifications apply in respect of trustees of a trust scheme who, by virtue of regulation 3(1), 4(1) or 5(1) of the Principal Regulations (trustees to whom climate change governance etc. requirements apply), must comply with requirements in Part 1 of the Schedule to those Regulations before 1st October 2022, and who remain subject to the requirements on that date.

(2) For the purposes of the amendments made by regulation 2(2)(a) of these Regulations, paragraph 15 of the Schedule to the Principal Regulations is to be read as if for 鈥渢he first scheme year in respect of which the requirements of this Part apply鈥� were substituted 鈥渢he scheme year which is underway on 1st October 2022鈥�.

(3) For the purposes of the amendments made by regulation 2(2)(b) and (c) of these Regulations, paragraph 21 of the Schedule to the Principal Regulations is to be read as if鈥�

(a) for 鈥渢he first scheme year in respect of which the requirements of this Part apply鈥� were substituted 鈥渢he scheme year which is underway on 1st October 2022鈥�;
(b) for 鈥渢hat first scheme year鈥� were substituted 鈥渢hat scheme year鈥�;
(c) for 鈥渁ny day before the requirements apply鈥� were substituted 鈥渁ny day before the requirements under paragraph 19A apply鈥�.

Transitional Provision

4.鈥�(1) The amendment made by regulation 2(3) does not apply in respect of a scheme year which ends before 1st October 2022.

(2) For the purposes of this regulation, 鈥渟cheme year鈥� has the meaning given by regulation 2 of the Principal Regulations.

Signed by authority of the Secretary of State for Work and Pensions

Name
Date
Parliamentary Under Secretary of State
Department for Work and Pensions

Explanatory note

(This note is not part of the Regulations)

These Regulations make amendments and modifications to the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 (S.I. 2021/839) (鈥渢he Principal Regulations鈥�). The Regulations also make transitional provision.

Regulation 2(2) amends Part 1 of the Schedule to the Principal Regulations (climate change governance etc. requirements) to introduce a requirement that trustees must select and calculate a portfolio alignment metric for the assets of their scheme.

A portfolio alignment metric is a metric which gives the alignment of the scheme鈥檚 assets with the goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels.

Regulation 2(3) amends paragraph 27(n) in Part 2 of the Schedule to the Principal Regulations (metrics information to be included in a report under regulation 6), to require that trustees include specified information about their portfolio alignment metric in the report they are required to produce and publish under regulation 6 of those Regulations.

Regulation 3 makes modifications to Part 1 of the Schedule to the Principal Regulations for trustees who were subject to requirements in Part 1 of the Schedule before the date on which this instrument comes into force, and who remain subject to the requirements on that date.

Regulation 3(2) modifies paragraph 15 of the Schedule to the Principal Regulations to provide that for the purposes of the amendments made by regulation 2(2)(a) of this instrument, paragraph 15 is to be read as requiring the trustees to select a portfolio alignment metric in the scheme year which is underway on 1st October 2022, rather than in the first scheme year in respect of which the requirements of Part 1 of the Schedule apply. The modification is made because for these trustees, the first scheme year in respect of which the requirements of Part 1 apply may have already passed when this instrument comes into force.

Regulation 3(3) modifies paragraph 21 of the Schedule to the Principal Regulations to provide that for the purposes of the amendments made by regulation 2(2)(b) and (c) of this instrument, paragraph 21 is to be read as applying in respect of the scheme year which is underway on 1st October 2022. This ensures that paragraph 21 will apply in respect of the first scheme year in which the trustees are required to select and calculate the portfolio alignment metric.

Regulation 4 makes transitional provision. It provides that the amendment made by regulation 2(3) of this instrument does not apply in respect of a scheme year which ends before 1st October 2022. Trustees are not required to calculate a portfolio alignment metric in scheme years ending before 1st October 2022. Regulation 4 therefore provides that the amendment made by regulation 2(3) 鈥� which would require trustees to include specified information about the portfolio alignment metric in the report they must produce and publish under regulation 6(1) of the Principal Regulations 鈥� will not apply in respect of those scheme years.

[A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.]