In October 2021 the Government Department for Work and Pensions (DWP) published an open consultation on Climate and Investment reporting: setting expectations and empowering savers.
The consultation saught views on policy proposals on Paris alignment reporting. It is proposed that the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021 are amended to require trustees subject to those regulations, to calculate and disclose a portfolio alignment metric setting out the extent to which their investments are aligned with the goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels. The consultation included related draft regulations and statutory guidance, and draft statutory/non-statutory guidance explaining DWP’s expectations on Implementation Statement reporting and the Statement of Investment Principles.
AREF’s ESG Disclosures Working Group drew up AREF's response. This was overseen by AREF’s Public Policy, ESG & Impact Investing and Investor Committees.