Sustainability Task Force Establishes Agenda for Fossil Fuel Elimination
UK Trustee Working Group Embraces Climate Stewardship and Policy Advocacy
A new working group of UK trustees is set to outline its key priorities tomorrow, with a focus on climate stewardship and policy advocacy. The group, which includes trustees from BEST Trustees, Dalriada, Pi Partnership, LawDeb Pension Trustees, and the Independent Governance Group, among others, aims to give a voice to smaller schemes that may not have sufficient in-house stewardship capacity.
The working group, launched in December last year, is committed to lobbying policymakers to cease any backing of new fossil fuel projects. However, it does not advocate divestment at this stage. Instead, the group emphasizes active engagement aligned with climate-related risks, including the low-carbon transition and resilience to physical damages from climate change.
Climate stewardship and policy advocacy around new fossil fuel projects are top priorities for the working group. Bobby Riddaway, managing director at HS Trustee and chair of the new initiative, stated this on the group's website. Riddaway argues that coordination between trustees could prevent TCFD reports from becoming tick-box exercises.
The UK pensions market has more than 5,000 private sector DB schemes, most of which are closed to further accrual. UK schemes with more than £1bn in assets are required to prepare TCFD reports. The working group sees the need for a more proactive stance on stewardship, aiming to move away from focusing on disclosures and towards turning pledges into action.
To involve smaller schemes in stewardship campaigns, the group recognizes that not all schemes have the scale or resources for direct engagement or voting on investee companies. Instead, the new stewardship frameworks suggest proportionate reporting and oversight roles for smaller schemes — they may focus on selecting and monitoring external managers rather than direct stewardship actions, reporting accordingly under Principle 5 (selection and oversight of managers). Larger schemes may undertake more direct stewardship activities and report on engagement and exercising voting rights under Principles 3 and 4, respectively.
The evolving UK Stewardship Code 2026 strengthens board-level accountability and calls for transparent reporting aligned with member outcomes and long-term value creation. It links stewardship directly to climate action and investment decisions. The code encourages pension schemes to demonstrate real-world impact by integrating ESG factors actively and advocating for sustainable business practices.
Riddaway sees the group as taking a proactive stance on stewardship, aiming to move away from focusing on disclosures and towards turning pledges into action. The group intends to work closely with regulators and other market participants over the next twelve months. Riddaway hopes the group can help pension providers put in place transition plans with real-world impact.
The group also aims to integrate the concept of planetary solvency into practice. They plan to raise their voice and send a clear message, rather than just responding to consultations. Riddaway argues that this approach is necessary to ensure that pension providers take a proactive stance on climate change and transition plans with real-world impact.
[1] UK Corporate Governance and Stewardship Codes [3] UK Stewardship Code 2026 [5] Task Force on Climate-related Financial Disclosures (TCFD)
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