Pension Schemes Bill: Aviva backs House of Lords call for pensions to align with Paris Climate Agreement

This afternoon, the House of Lords will debate the Pension Schemes Bill[1]. 

Among the amendments being debated, Baroness Hayman[2] is proposing that pension schemes be required to disclose how they will align their investment strategies with the goals of 2015 United Nations Paris Agreement on Climate Change – seeking to limit the increase in global average temperatures to 1.5°C above pre-industrial levels. This would make the UK the first country in the world to align the actions of pension schemes with the Paris Agreement. Aviva supports Baroness Hayman’s amendment.

Commenting, Baroness Hayman, said:

“The UK has set itself a clear timetable to reach net zero emissions by 2050 so we need a correspondingly clear timetable to align the pensions sector with the objectives of the Paris Agreement. The Government’s move to enable the creation of an oversight , disclosure and compliance regime reflecting the Task-Force on Climate-Related Financial Disclosures’ (TCFD[3]) recommendations is welcome but it does not require pensions schemes to provide information on how their investments align with the objectives of the Paris Agreements, not all schemes are covered, and there is no timetable by which any new regime will be in place. Overall, there are too many opportunities for Regulations to be watered down or delayed. 

“The amendments I and others from across the House have tabled address these deficiencies, as well as giving consumers better information and a chance to influence how their money is being invested. We see these measures as a critical part of the UK’s global leadership in advance of COP 26.”

Commenting, Alistair McQueen, Head of Savings & Retirement at Aviva said:

“Private pensions hold £6,000bn of private wealth[4]. This is the biggest source of private wealth in the UK. Private pensions can be force for good. 

“Private pensions must play their part in tackling climate change. But bold action is needed. 

“Aviva supports Baroness Hayman’s call for the Pension Schemes Bill to be bolder - by requiring alignment with the Paris Agreement.

“With the UN Climate Change Conference – COP26 – coming to Glasgow in November, UK private pensions have a unique opportunity to lead by example – for the good of our customers, and the good of our planet.”