Why covenant assessment should be front and centre of your TCFD report
As we continue down the path of climate-related financial disclosures, it is crucial for pension schemes to embrace a more comprehensive and forward-thinking approach.
Climate change is impacting every aspect of pension scheme management and strategy. From scheme investments to employer covenant to insurers in the buyout market, action is now needed to rethink strategies, drive long-term sustainability and deliver improved member outcomes.
We can provide support to identify and understand climate-related risks and opportunities affecting pension schemes to drive better decision-making around scheme strategies.
Whether you’re looking to understand how climate change could affect your long-term journey plan, preparing sustainability reporting or would like to understand how your progress compares to peers, we’ll be right there alongside you. We bring sustainability, covenant and sector expertise together to provide the insights you need.
Identify potential employer covenant risks and opportunities
PwC's leading sustainability and covenant teams work together with our sector experts to pinpoint the most critical climate risks and opportunities impacting covenant in the short, medium, and long term.
We then use these insights to recommend actions to enhance outcomes for both employers and members.
Monitor ongoing risks
We support our clients to monitor climate-related risks as they develop over time, assessing progress against targets and benchmarking against peers to deliver meaningful insights. This enables them to take necessary actions to safeguard the resilience of their schemes and support the achievement of long-term journey plan goals.
Review net zero strategy
Our research indicates that although more than half of UK businesses have formulated a net zero strategy, only a small number have established clear transition plans, including methods to measure their successful execution.
We evaluate net zero strategies and track progress against targets over time to offer valuable insights into the resilience of the employer covenant to climate-related risks.
Deliver robust Task Force on Climate-related Financial Disclosures (TCFD) reporting
Alongside our Sustainability Reporting team and industry specialists, we support our clients to draft full TCFD reports and to prepare the covenant elements of TCFD reporting. Our multidisciplinary team offers an integrated approach, ensuring TCFD reporting serves as a vital tool for effective risk management, enhancing transparency and driving change.
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