On an annual basis, the ISC also evaluates the performance of its appointed investment consultant in line with agreed objectives. The ISC is comfortable with t he consultant’ s ability to advise on climate- related risks and opportunities, having considered the approach the consultant takes to determine ESG ratings for the investment managers, as well as knowing that the consultant is a signatory to the UNPRI and the UK Stewardship Code.
Training
The ISC maintains a training log and receives training on sustainable investment issues, including climate change, as required. The ISC decides on training topics through regular discussions of its training needs. Such topics are discussed within a stand-alone agenda item at meetings. Over 2024, training included specific sustainability items on meeting agendas and presentations from a number of the Scheme’s asset managers, including updates on how sustainability matters were incorporated into their strategies. Such sessions allow for an opportunity for the ISC to question and challenge its consultants and asset managers on sustainability matters. In addition, the Trustee had training from their investment consultant on the practicalities of setting a net zero target. The Trustee has not set such a target at this time but will continue to develop their thinking in conjunction with work being undertaken to consider the long-term objectives of the Scheme. Considerations of long-term objectives will be actively discussed during 2025 alongside the consideration of the results of the Actuarial Valuation due as at 31 December 2024.
Reporting on carbon exposure and climate-related risks
The Trustee has now published three annual TCFD reports (including this document) and, to support these, the ISC has commissioned reports on carbon exposure analysis and scenario testing of the resilience of the investment strategy in different future climate and policy response scenarios. In preparing this year’s report, t he Trustee collected and analysed updated emissions data and previous carbon exposure analysis (to consider the year-on-year change in the data). This Trustee also considered scenario testing undertaken previously, including the need to refresh it. The Trustee, via the ISC and its advisers, reviews its strategy and engages with its investment managers based on the key findings from such analysis, as necessary.
UTC UK Pension Scheme | TCFD Report | 31 December 2024
Version 1
3 of 11
PUBLIC
Made with FlippingBook - PDF hosting