Getting to net zero
A spotlight on the role of pension trustees
What is net zero?
Where did the concept of net zero come from?
Put simply, “net zero” refers to achieving a balance between the amount of greenhouse gas (GHG) emissions produced and the amount of GHG removed from the atmosphere. When human activities add no more GHG emissions than we take away, we reach net zero.
Achieving net zero is important as, to eventually stop global warning, net additions of GHG into the atmosphere have to reach zero.
With net zero now being a mainstream concept, it is easy to forget how far it has come in a short period of time.
Download the full version of our latest guide for Getting to net zero
We advise on the development and implementation of ESG strategies consistent with trustee fiduciary duties and the development of trustee ESG and engagement policies, including how to document trustee responsible investment policies and related disclosures. We also provide ESG training for trustees and pension scheme providers.
For further information and advice on ESG and climate change considerations for UK pension schemes, contact any of the contributors to this guide using the details below, or your usual Sackers contact.
How we can help
+ 44 20 7615 9539
The Paris Agreement established goals of keeping global average temperature rises to well below 2°C above pre-industrial levels and aiming for 1.5°C
GHG emissions need to be at net zero around 2050, or around 2070 for a 2°C rise
In June 2019, the Government amended the Climate Change Act 2008 to commit the UK to achieving net zero by 2050
December 2015 – the Paris Agreement established goals of keeping global average temperature rises to well below 2°C (aiming for 1.5°C) and to achieve net zero GHG emissions in the second half of the century.
The net zero story
What is net zero?
July 2019 – Government publishes its Green Finance Strategy setting out its proposals on the role of the financial sector in delivering global and domestic climate objectives.
February 2021 – the Pension Schemes Act 2021 receives royal assent, paving the way for increased climate change governance and reporting obligations on trustees.
October 2021 – the Climate Change Governance Regulations come into force, requiring trustees to meet the climate change governance requirements which underpin the TCFD recommendations and publish an annual report on how they have done so.
31 October to 13 November 2021 –
COP26 takes place, concluding in the signing of the Glasgow Climate Pact (which sets out a series of resolutions which build on the Paris Agreement and sets out what needs to be done to tackle climate change) and the agreement of the Paris rulebook (which gives guidance on how the Paris Agreement is delivered).
+ 44 20 7615 9532
+ 44 20 7615 9550
+ 44 20 7615 9574
+ 44 20 7615 9575
+ 44 20 7615 9534
+ 44 20 7615 9519
+ 44 20 7615 9523
December 2015 adoption of the Paris Agreement