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 2025, 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 asset managers on sustainability matters. In addition, over the year, the Trustee had training from their investment consultant on climate scenario analysis, including the key climate risk and opportunities that the Scheme’s strategy is exposed to, the key limitations of the analysis, and the various climate scenarios that were used.
Reporting on carbon exposure and climate-related risks
The Trustee has now published four 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, the Trustee collected and analysed updated emissions data and previous carbon exposure analysis (to consider the year-on-year change in the data). The Trustee also considered updated scenario testing undertaken during 2025. 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.
Strategy
Climate-related risks and opportunities over the short, medium and long term The Trustee believes that sustainability issues, in particular climate change, present risks and opportunities that increasingly require explicit consideration and may materially affect the future financial performance of the Scheme’s investments.
The Trustee has considered the following short, medium and long term drivers of risk.
Short term (less than 7 years)
• Momentum-driven changes in markets as investor awareness changes, e.g. because of concerns about specific stocks that might be vulnerable to the transition to a lower carbon economy. • Market pricing changes caused by the likelihood of different climate scenarios emerging, e.g. if a higher warming scenario becomes more likely because of a failure of governments to agree necessary action to limit warming to 1.5°C-2.0°C. • Unexpected regulatory changes that cause rapid price movements, e.g. the introduction of high rates of carbon taxation. • Risks associated with the transition to a low carbon economy are likely to become increasingly important over the medium term, especially where delayed (i.e. not implemented over the short term). • Such risks/opportunities include development of new technologies, obsolescence of existing industries, and development of policy and regulation.
Medium term (7 to 20 years)
UTC UK Pension Scheme | TCFD Report | 31 December 2025
Version 1
3 of 10
PUBLIC
Made with FlippingBook - PDF hosting