TPR announces development of net zero transition plan template for occupational pension schemes
The Pensions Regulator (TPR) has announced the development of a voluntary net zero transition plan template specifically designed for occupational pension schemes. This initiative will be undertaken in collaboration with industry stakeholders, advisers and professional bodies and will be guided by the framework and recommendations of the UK Transition Plan Taskforce. The aim is to support trustees in managing climate-related financial risks and identifying sustainable investment opportunities, in line with the UK’s 2050 net zero target. TPR’s Interim Executive Director of Market Oversight, Julian Lyne, will chair the working group responsible for creating and testing the template. Members of the group will be appointed by the group's Chair with membership expected to include trustees, advisers and representatives of professional bodies. Although transition plans are not currently mandatory, mandating transition plans aligned to the Paris Agreement goal of limiting global temperature rises to 1.5C was included in the Labour Party's pre-election manifesto. Raising trustee awareness of transition plans and their benefits has been an area of ongoing focus for TPR who views them as a valuable tool for improving investment governance and in shaping investment decisions in the interests of savers. The final template is set to integrate climate, nature, societal factors and is intended to align with the UK’s Sustainable Disclosure Requirements and associated Sustainable Reporting Standards. The aim is for the template to be submitted to the Department for Work and Pensions during 2025. TPR is also enhancing its internal expertise on environmental, social, and governance matters by expanding its climate and sustainability team and joining the United Nations Global Compact.