Greening Finance: embedding sustainability in financial decision making Contents

Contents

1 Climate risks & financial regulation

Climate change risks: physical, liability and transition

The scale of the risks

The Bank of England

A Tragedy of the Horizon?

Misaligned incentives

2 Pension saving & environmental risk

Influence of asset owners

Pension saving in the UK

Interpretation of fiduciary duty

Short-term vs long-term returns

Law Commission findings on fiduciary duty

Disparity on guidance for trust & contract-based pension schemes

Clarifying the law on fiduciary duty

Giving pension savers a say on sustainability

Statement of Investment Principles

3 Climate risk reporting

The Task Force on Climate-related Financial Disclosures (TCFD)

Benefits of disclosures

Who should TCFD apply to?

How the top 25 pension funds manage climate change risk

Supporting reporters on scenario analysis

Reference scenarios

Voluntary vs mandatory

Using new legislation or the existing regulatory framework

The Companies Act

Recommendations of the Green Finance Taskforce

4 Financial regulators and climate risk

Prudential Regulation Authority

Financial Reporting Council

Financial Conduct Authority

The Pensions Regulator

Adaptation Reporting

Conclusions and recommendations

Appendix: Support for TCFD

Annex: Table of pension fund responses

Published written evidence

List of Reports from the Committee during the current Parliament

< Committee information

Published: 6 June 2018