Pensions Regulator publishes report assessing DC schemes’ resilience to climate change

On April 10, 2025, the Regulator published a report outlining the climate change risks most relevant to UK schemes which shows that there are “too many” small DC schemes where trustees' knowledge of the scale of financial risks posed by climate change is limited.

The report covers schemes with £1.4trn in UK private occupational pension saving and reveals that while all master trusts and 92 per cent of large schemes dedicate resources to climate risk, only four per cent of micro schemes and 25 per cent of small schemes do the same. The Regulator is calling on trustees of smaller schemes to upskill or consider market consolidation.

In addition, the Regulator has published a strategy setting out the main risks of climate change to the Regulator itself as an organisation and the actions it is taking to manage them.