![]() |
![]() In today’s pensions landscape, awareness of and managing systemic risks is not a “nice to have”, it’s a core part of effective trusteeship. Climate change, nature loss, and other systemic risks are not abstract concerns. Where they are financially material, trustees have a duty to understand and manage them as part of their fiduciary responsibilities. Strong investment governance is essential, especially in complex areas such as environmental, social and governance (ESG) and private markets. |
By Mark Hill, Climate and Sustainability Lead, TPR
Governance that protects savers
At The Pensions Regulator (TPR), we are raising expectations around investment governance. Trustees should ensure that decisions are long-term, well-evidenced, and subject to appropriate challenge. This is not just about compliance, it is about leadership. We have adopted a more prudential style of regulation, with a sharper focus on systemic risks and how trustees are embedding addressing those risks into their investment governance. Through our Market Oversight team, we are having more expert-to-expert conversations with schemes to support this shift.
Trustees should ask:
Are we confident our investment strategy is resilient to climate and nature-related risks?
Do we have the right information to challenge our advisers and asset managers? Are we considering long-term risks in every investment decision, not just short-term returns?
Tools to support better decisions
The TNFD has published several useful resources:
Asking better questions on nature
Identifying risks and opportunities from nature-related dependencies and impacts Evidence review on the financial effects of nature-related risks These tools can help trustees move from awareness to action and embed sustainability into investment strategies.
Building capability and confidence
We have also:
embedded ESG content into our Trustee Toolkit
consolidated our ESG and climate guidance into one place on our website continued to share emerging good practice across the sector
Trustees should ask:
Do we have the knowledge and skills, and advice to oversee ESG risks effectively?
Have we used the Trustee Toolkit to build our board’s confidence? Are we keeping up with evolving expectations and relevant guidance?
Transition plans: shaping the future
In June, the government launched a consultation on mandating UK-regulated financial institutions, including pension schemes, to develop credible transition plans. These plans aim to help schemes integrate climate and nature-related risks into investment decisions and improve market-wide understanding of systemic risk.
We urge trustees to engage with this consultation (closing 17 September). This is your opportunity to shape what good looks like. We are also convening an industry working group, chaired by our Executive Director of Market Oversight, Julian Lyne, to develop thinking around a practical approach to transition planning for occupational schemes. If you would like to submit written evidence toward this then please email esg@tpr.gov.uk by 1 September. Questions we are particularly interested in answering include:
What existing initiatives and proposals can inform the group’s work?
Leading the way Systemic risks are complex, and the future uncertain but the actions trustees can take now are clear.
Ask yourself:
Are we treating climate and nature-related risks as core financial risks?
Are we confident in the resilience of our investment strategy? Are we engaging with the right tools, guidance, and consultations to stay ahead?
What trustees can do now |
|
|
|
Deputy Head of Pricing | ||
London - £150,000 Per Annum |
BPA Implementation Analyst | ||
North-West / hybrid 2-3dpw office-based - Negotiable |
Pricing Actuary – London Market | ||
London / Hybrid - Negotiable |
Pricing & Underwriting Analyst | ||
London / Hybrid - Negotiable |
BPA Transition Manager | ||
South East - Negotiable |
Modelling Actuary - Life | ||
South East - Negotiable |
Reporting Actuary - Life | ||
South East - Negotiable |
London Market Pricing Manager | ||
London - Negotiable |
London Market Pricing - FTC | ||
London - Negotiable |
Senior Pensions Data Technician - Ful... | ||
Fully remote - Negotiable |
STAR EXCLUSIVE: Remote GI Reserving A... | ||
UK remote - Negotiable |
Life Actuarial (Senior) Analyst | ||
South East / hybrid 1 dpw office-based - Negotiable |
Actuarial Pensions Consultant | ||
Nationwide / hybrid 2 dpw office-based - Negotiable |
Specialist Pensions Consultant | ||
London / remote - Negotiable |
Business Development Actuary - Pensions | ||
London / hybrid - Negotiable |
Make your mark in insurance consulting | ||
London/hybrid 2-3dpw office-based - Negotiable |
FTC: Financial Risk Manager | ||
London/hybrid 2-3dpw office-based - Negotiable |
Pricing Actuary (Retail) | ||
London/Hybrid - £130,000 Per Annum |
Capital excellence in the capital - S... | ||
London - Negotiable |
Life Reinsurance Associate - Bermuda | ||
Bermuda - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.