Regulation 2 Amendment of the Principal Regulations

(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”.