The Pensions Regulator to develop and test a voluntary net zero transition plan template for occupational pension schemes

The Pensions Regulator (TPR) announced it will work with industry stakeholders, advisers and professional bodies to develop and test a voluntary net zero transition plan template tailored to trust-based occupational pension schemes, drawing on the UK Transition Plan Taskforce (TPT) framework and guidance. The template is intended to support trustees in managing transition risks, including potential value losses in fossil fuel and other high-carbon investments and market volatility, as well as in identifying investment opportunities linked to the transition. The final template is expected to be capable of integrating climate, nature, societal factors and adaptation, and to complement and support the UK Sustainable Disclosure Requirement and associated Sustainable Reporting Standard. Alongside this initiative, TPR noted it will continue working with other UK authorities including the Financial Conduct Authority, the Department for Work and Pensions (DWP) and HM Treasury on aligned expectations and guidance, has joined the United Nations Global Compact, and is expanding its climate and sustainability team. A transition plan working group, chaired by TPR’s Interim Executive Director of Market Oversight Julian Lyne, will be established to develop and test the template, with members appointed by the chair and expected to include trustees, advisers and professional body representatives. TPR plans to present the ultimate template to DWP this year.