Member

The power to manage system-level risks adequately would not only empower schemes to consider climate and nature; it could also unlock substantial investment in sustainable growth and the essential services we need to future-proof our society, such as clean energy, nature protection, homebuilding and transport infrastructure. I know that the Minister believes that the statutory guidance they are suggesting will solve the problem, but there are real concerns, from within and outside the industry, about the efficacy of that approach, or whether guidance alone will give the confidence and clarity that is needed. First, it is unclear how the statutory guidance that the Government are proposing would interface with pension schemes that have not been mentioned. This includes the Local Government Pension Scheme and workplace personal pensions, which account for around £1 trillion of assets and whose administrators are still long-term asset owners which bear exposure to the same systemic risks—a point that was argued by Unison in its briefing to members of the committee.