Pete Smith, Principal at Barnett Waddingham, believes the guidance is needed for trustees to develop deeper understanding.
Pete Smith, Principal at Barnett Waddingham, said: “Climate risk is the topic of the decade, and that’s true too for pension scheme trustees. We are already very much aligned with the thrust of the PCIRG consultation, and believe in the importance of a framework to understand and manage climate risk. All of our trustee clients have indicated that they recognise ESG as a financial risk, and the use of temperature differentials for scenario analysis is a helpful way to makes the subject more accessible.
“However, we recognise the challenge the consultation presents to developing deeper client understanding. This is a significant change for trustees; it is vital they have access to expertise and guidance throughout the process, and we look forward to supporting them now and ahead of any developments.
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