How fund managers can help pension schemes with their TCFD reporting obligations
The Investment Association, PLSA and ABI developed the Carbon Emissions Template (CET) to help pension schemes meet their obligations under the Climate Change Governance and Reporting Regulations and associated DWP Statutory Guidance and to help insurers and asset managers fulfil their obligations under the FCA’s ESG Sourcebook as set out in PS21/24.
The first phase of the joint IA/ABI/PSLA Working Group’s remit was to create a standard template and data specification to provide pension schemes with the core data required to calculate the three mandatory metrics and to make the required disclosures about data coverage and data quality. This template first came into effect for data provided to pension schemes for their scheme years ending 31 December 2021.
The group also developed two MaGeC files to enable Manually Generated CETs to be created, one for pooled funds and the other for segregated mandates.
In February 2023, the Working Group issued the second edition of the CET. This edition reflects updates to the Regulations, Statutory Guidance, and the PCAF Standard.
This version builds on the first edition by adding a basic portfolio alignment metric, developing the information about sovereign debt, and introducing the capacity to provide information related to derivatives.
The Working Group would welcome feedback in light of implementation experiences and suggestions for further developments.
The Investment Association have also created a video podcast, available for AREF Members on TCFD Reporting - View the video here.
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