The Pensions Research Accounting Group (PRAG) has published guidance to help preparers of annual reports with the new Task Force on Climate-related Financial Disclosures (TCFD) reporting requirements which came into effect from 1 October 2021 for certain schemes.
The guidance also contains a summary of the requirements for Implementation Statements and on the requirements for Environmental Social and Governance (ESG) factors and stewardship disclosures that are required in pension scheme annual reports.
The PRAG guidance also includes a useful reminder of the requirements for Implementation Statements and a summary of the investment disclosures that must be included in the annual report which are set out in the addendum to the Statement of Recommended Practice that was published by PRAG in February 2021.
The largest schemes for whom the TCFD reporting regulations came into force on 1 October 2021 should already be well advanced in their preparations for TCFD reporting, but those schemes that will impacted from 1 October 2022 should begin preparing if they have not done so already.
The availability of data sources and best practice will clearly evolve over time, but Trustees should make themselves familiar with the requirements and what they mean for their scheme. An action plan should be prepared which identifies where assistance is required and which advisor will need to help in each area.
To discuss this further, please contact Shona Harvie or your usual Crowe contact.
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