The emissions and footprint associated with the Scheme’s LDI portfolio fell over the period. This was driven by a fall in the estimated UK economy’s carbon footprint.
The Trustee understands that Scope 3 emissions data for gilts are only available with at least a three- year lag and have therefore not been reported by the investment manager.
The Trustee also understands that governments cannot verify their own emissions reductions targets with the Science Based Targets Initiative, given this is designed for use by companies. Independent Portfolio alignment assessment models such as Germanwatch and Climate Action Tracker suggest that the UK Government is no longer aligned with the goals of the Paris Agreement, however such assessment models remain under review. Target used to manage climate-related risks and opportunities The Trustee’s initial target was to work with its investment managers to improve data coverage for specific assets on Scope 1 and 2 emissions to 90% within the first three years of reporting, i.e. by 31 December 2025. This target has now been reached. Specifically, over the period, the data coverage on Scope 1 and 2 emissions improved to 96% on the assets considered. The Trustee’s new target is to work with its investment managers to improve data coverage for Scope 1, 2 and 3 emissions to 90% on all assets, except LDI, asset-backed contribution arrangements and AVCs, by 31 December 2030. The data quality metric for scopes 1, 2 and 3 on all assets, except LDI and asset- backed contribution arrangements (that is the assets invested in equities, target return, corporate bonds and secure income) was approximately 80% as at 31 December 2025 (approximately 10% below the target). Whilst secure income assets are included within the Trustee’s target, metrics on this asset class have not been included in the previous section due to practical issues around the continued availability and quality of relevant data.
Approved by UTC Pension Trust Ltd on 27 May 2026
UTC UK Pension Scheme | TCFD Report | 31 December 2025
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