TCFD governance and reporting requirements

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 have been introduced for certain pension schemes from 1 October 2021. The new requirements do not affect financial reporting disclosures but do have an impact on the information included in (and linked from) the annual report of occupational pension schemes.

Sarah Lacey, Chair of the PRAG ESG Working Party, 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.’

Shona Harvie, Chair of PRAG Executive, said, ‘The largest schemes are beginning to report on how they manage climate risk through TCFD reports. The UK being the first country to mandate TCFD reporting in the pensions sector. Thank you very much to Sarah and the other members of the working party for putting together the guidance in this important area. We look forward to further developments in future.’

Notes to editors 

Contacts: For further information or a copy of PRAG’s guidance paper, please contact PRAG’s Press Officer