Citation, commencement, extent and interpretation

1. —(1) These Regulations may be cited as the Occupational Pension Schemes (Climate Change Governance and Reporting) (Amendment, Modification and Transitional Provision) Regulations 2022 and come into force on 1st October 2022.

(2) These Regulations extend to England and Wales and Scotland.

(3) In these Regulations “ the Principal Regulations ” means the Occupational Pension Schemes (Climate Change Governance and Reporting) Regulations 2021( 2 ).

Amendment of the Principal Regulations

2. —(1) The Principal Regulations are amended as follows.

(2) In Part 1 of the Schedule (climate change governance etc. requirements)—

(a) in paragraph 15—

(i) at the end of sub-paragraph (b) omit “and”;

(ii) after sub-paragraph (b) insert—

“ (ba) one portfolio alignment metric; and ” ;

(b) after paragraph 19, insert—

“ 19A. Trustees must in each scheme year, as far as they are able—

(a) obtain the data required to calculate their selected portfolio alignment metric;

(b) use the data obtained to calculate that metric in relation to the scheme’s assets; and

(c) use the metric they have calculated to identify and assess the climate-related risks and opportunities which are relevant to the scheme. ” ;

(c) in paragraph 21, after “paragraphs 18” insert “, 19A” ;

(d) in paragraph 26—

(i) in the definition of “additional climate change metric”, at the end, insert “or a portfolio alignment metric” ;

(ii) after the definition of “greenhouse gas” insert—

“ “ portfolio alignment metric ” means a metric which gives the alignment of the scheme’s assets with the climate change goal of limiting the increase in the global average temperature to 1.5 degrees Celsius above pre-industrial levels; ” .

(3) In Part 2 of the Schedule, (information to be included in a report under regulation 6) in paragraph 27(n), after “paragraphs 18” insert “, 19A” .

Modification of the Principal Regulations

3. —(1) The following modifications apply in respect of trustees of a trust scheme who are required to comply with the requirements in Part 1 of the Schedule to the Principal Regulations before 1st October 2022, and who have not ceased to be subject to the requirements before that date.

(2) For the purposes of the amendments made by regulation 2(2)(a) of these Regulations, paragraph 15 of the Schedule to the Principal Regulations is to be read as if for “the first scheme year in respect of which the requirements of this Part apply” were substituted “the scheme year which is underway on 1st October 2022” .

(3) For the purposes of the amendments made by regulation 2(2)(b) and (c) of these Regulations, paragraph 21 of the Schedule to the Principal Regulations is to be read as if—

(a) for “the first scheme year in respect of which the requirements of this Part apply” were substituted “the scheme year which is underway on 1st October 2022” ;

(b) for “that first scheme year” were substituted “that scheme year” ;

(c) for “any day before the requirements apply” were substituted “any day before the requirements under paragraph 19A apply” .

4. —(1) The following modifications apply in respect of trustees of a trust scheme who are required to comply with the requirements in Part 1 of the Schedule to the Principal Regulations before 1st October 2022 but who have ceased to be subject to the requirements before that date, where such trustees are subsequently required to comply with those requirements by virtue of regulations 3(4), 4(4) or 5(4) of the Principal Regulations.

(2) For the purposes of the amendments made by regulation 2(2)(b) and (c) of these Regulations, paragraph 21 of the Schedule to the Principal Regulations is to be read as if—

(a) for “the first scheme year in respect of which the requirements of this Part apply” were substituted “the first scheme year in respect of which the requirements of paragraph 19A apply” ;

(b) for “that first scheme year” were substituted “that scheme year” ;

(c) for “any day before the requirements apply” were substituted “any day before the requirements under paragraph 19A apply” .

Transitional Provision

5. —(1) The amendment made by regulation 2(3) does not apply in respect of a scheme year which ends before 1st October 2022.

(2) For the purposes of this regulation, “ scheme year ” has the meaning given by regulation 2 of the Principal Regulations.