The Pension Schemes Bill 25-26 is the first legislation of this government’s landmark programme of pension reform. Its core aim is to boost investment in the UK. However, the Bill (and broader reforms) currently overlook the biggest threat to pension savers and the UK economy: the financial impacts of climate change and nature loss.
UK pension funds are significant investors in fossil fuel assets and companies linked to deforestation, These exposures increase the risk of stranded assets, climate-driven economic shocks, and inflation in essential goods – all of which directly undermine the value of pension pots and the stability of the wider financial system.
Alongside unions and civil society organisations in the Better Pensions Coalition, this briefing urges Peers to raise this issue at the Second Reading of the Bill on 18 December 2025.
