The Pensions Research Accountants Group (PRAG) has published guidance to help practitioners understand the Taskforce on Climate-related Financial Disclosures (TCFD) governance and reporting requirements that came into force for larger schemes from 1 October this year.
The industry body said, while the new requirements do not affect financial reporting disclosures, they do have an impact on the information included in, and linked from, the annual report of occupational pension schemes.
The new TCFD governance and reporting requirements affect master trusts and schemes with more than £5bn in assets from 1 October this year. The rules will be expanded to include schemes with more than £1bn in assets from 1 October next year.
PRAG ESG working party chair Sarah Lacey said: "Occupational pension schemes are at the forefront of mandated climate-related financial disclosures with the Pension Schemes Act 2021 and climate change regulations introducing new disclosure requirements around climate change risk.
"The guidance has been produced as a starting point for schemes caught in the initial two waves of reporting and we will develop the document as more information, increased regulation and examples of best practice emerge."
The guidance is available to PRAG members on its website: https://www.prag.org.uk/