Member

170: After Clause 117, insert the following new Clause— “Fossil fuels and climate risk(1) The Pensions Act 1995 is amended according to subsections (2) and (3).(2) After section 41B (climate change risk: publication of information), insert—“41BA Climate change risk and occupational pension schemes: Secretary of State duty(1) The Secretary of State must collect information on, or estimates of—(a) the amount, and(b) the change in the amount of, relevant assets held by the trustees of occupational pension schemes. (2) The Secretary of State must prepare and publish an annual report on the information collected under subsection (1).(3) Regulations may require the trustees or managers of an occupational pension scheme of a prescribed description to supply the information in subsection (1).41BB Climate change risk: relevant assets(1) The relevant assets in sections 41BA are issuance by issuers which—(a) derive 10% or more of their annual revenue from the production, transport or combustion of thermal coal,(b) produce more than 10 million tonnes of thermal coal each year,(c) are developing new mines, new power plants or new infrastructure for the extraction or use of thermal coal,(d) derive more than 5GW of power generation capacity from thermal coal, or(e) derive more than 10% of power generation capacity from thermal coal.(2) Within two years of the day on which the Pension Schemes Act 2026 is passed, and every three years thereafter, the Secretary of State must consider whether the definition of relevant assets should be extended to include certain forms of issuance by other issuers deriving a certain proportion or amount of revenue from certain other fossil fuel-related activities.(3) The Secretary of State may, by regulations, give effect to the outcome of the considerations in subsection (2).(4) In this section—“issuance” means all investable assets, including equity and debt;“thermal coal” means coal and lignite used in the generation of electricity and in providing heat for industrial or residential purposes.” (3) In section 41C (compliance) for “section 41A or 41B”, in each place it occurs, substitute “any of sections 41A to 41BB”.(4) The Financial Conduct Authority must make general rules with effects corresponding to the provisions inserted by subsection (2) for providers of pension schemes to which Part 7A of the Financial Services and Markets Act 2000 (inserted by section 48 of this Act) applies.(5) The Secretary of State must by regulations make provision with effects corresponding to the provisions inserted by subsection (2) for the Local Government Pension Scheme.(6) Regulations under this section are subject to the affirmative procedure.”Member’s explanatory statement This amendment would require pension investments in thermal coal by private sector occupational schemes, workplace personal pension schemes and the LGPS to be annually monitored and reported on. It also requires periodic consideration of whether the range of reported-on assets should be extended.