UK's pension regulatory body devising a standardized transition plan format
The UK's Pensions Regulator (TPR) is taking a proactive approach to help pension trustees manage transition risks and capitalise on investment opportunities in a net-zero economy.
TPR announced plans to form a working group with industry stakeholders and professional bodies to develop and test a voluntary template for occupational pension schemes. The working group will be based on the framework and guidance developed by the Transition Plan Taskforce (TPT).
According to TPR, the template aims to help pension trustees manage transition risks, such as the potential fall in the value of investments in fossil fuels, ahead of any legislation. The working group will collaborate with the industry ahead of any legislation to ensure that the template is practical and effective.
The TPR-led working group will draw on the work of the TPT, which found that over 60% of climate-related disclosures by pension trustees contained some form of net-zero goal. TPR believes that transition plans could help trustees capitalise on investment opportunities and promote sustainable investment, in line with the UK government’s net-zero economy goals by 2050.
There is pressure on pension funds worldwide to consider climate change risks and make sustainable investment decisions. Campaigners advocate for transparency and potential tighter regulation, and the TPR-developed template is a step towards meeting these demands.
The Labour party in Britain has promised to mandate transition plans aligned with the Paris Agreement's goal of limiting global temperature rises to 1.5C in its pre-election manifesto. The TPR-developed template will be presented to the government later this year.
The Make My Money Matter campaign states that £88bn of UK pension savers' money is currently invested in fossil fuels, but the industry could invest £1.2tn into renewable energy and climate solutions by 2035. Two-thirds of UK pension holders support their funds investing in renewables, according to the campaign.
Julian Lyne, TPR's interim executive director of market oversight and chair of the planned working group, stated that sustainability initiatives should improve investment governance practices and aid in making good long-term strategic decisions. The working group will include trustees, scheme administrators, and industry experts engaged in discussions and pilot testing under TPR’s oversight.
The page was last updated on July 10, 2025. The TPR-developed template is part of TPR's ongoing efforts to raise awareness among trustees about the benefits of transition plans and to shape investment decisions in the interests of savers.
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