Sixty-five percent of surveyed UK-based pension funds now have net zero commitments, with an increasing number also turning their intention to biodiversity- and nature-related issues. The survey, conducted by the Pensions and Lifetime Savings Association (PLSA), found that 23% of schemes with a net zero commitment aim to achieve net zero by 2040, while 44% expect to reach this target between 2040 and 2050. The PLSA also identified challenges hindering progress, including a lack of high-quality data (59%) and uncertainty regarding future government policies (55%). Ninety percent of pension funds with a net zero commitment are engaging with companies to reduce emissions, while 80% are investing in renewable energy. “Having tracked the progress of our members, it is promising to see the commitment towards achieving net zero has remained, with more organisations moving from intent to implementation of their plans,” said the PLSA’s Deputy Director of Policy Joe Dabrowski. In contrast, only 17% of respondents reported a strong familiarity with the Taskforce on Nature-related Financial Disclosures (TNFD). Eighty-three percent cited limited access to nature data as a barrier to the implementation of the TNFD reporting recommendations. Despite these challenges, 73% of asset owners surveyed said they plan to adopt TNFD within the next five years. To support pension schemes, the PLSA has published guidance highlighting the financial and environmental risks posed by biodiversity loss. “Action on biodiversity lags behind climate efforts, though frameworks like TNFD aim to bridge this gap,” said Dabrowski. “Our guide highlights practical steps, case studies, and links to climate reporting, urging members to proactively address biodiversity to safeguard long-term financial and ecological stability.”
