The Pensions Schemes Bill 2024-25 is the first legislation of this government’s landmark programme of pension reform. Its core aim is to boost investment in the UK. However, it overlooks the biggest risks to pension savers and the UK economy: climate change and nature destruction.
UK pension funds are significant investors in fossil fuel assets and companies linked to deforestation, which threatens the long-term security of savers, growth prospects for the UK’s economy, and the stability of the wider financial system. At the same time, only 4% of pension assets are invested in climate solutions, despite rapid growth in the net zero economy. The Bill as it stands risks making this situation worse.
We submitted this evidence, alongside unions and civil society organisations in the Better Pensions Coalition, to the Commons public bill committee. It makes the case for MPs to strengthen the legislation by considering amendments that link the Bill to the UK’s net zero ambitions and climate and nature targets.
