Trustee Bobby Riddaway is calling for a moratorium on TCFD and implementation statements for pension schemes, citing the high costs and limited benefits of these reports. In a recent column, Riddaway, who is the managing director of HS Trustees and the founder chair of the Trustee Sustainability Working Group, argued that many of these reports are seen as “box-ticking exercises” that divert resources from more impactful climate initiatives.
According to Riddaway, some schemes spend as much as £500,000 annually on these disclosures, with implementation reports, especially for schemes under £100m, often being “generic and consume a disproportionate share of consulting budgets”.
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Riddaway believes this approach is not only costly but also ineffective, as it leaves “little room for proactive climate strategy”. He argues that the industry’s sustainability advocates, including trustees, consultants, and asset managers, are often stuck in a reporting loop, rather than educating or innovating.
Riddaway said: “The industry’s sustainability advocates — trustees, consultants and asset managers — are often stuck in a reporting loop, rather than educating or innovating.”
Riddaway proposes a moratorium on TCFD and implementation statements for pension schemes, which he believes would free up expert time for educating trustees and consultants, developing structured finance models, and building confidence in private asset classes. This move, he argues, would signal government intent to prioritize action over compliance and encourage collaboration between schemes, government bodies, and institutions like the British Business Bank and National Wealth Fund.
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By taking this approach, Riddaway believes that the government could observe how successful the industry is at unlocking pension capital for the climate transition before deciding on its long-term requirements. He thinks that these requirements might include replacing TCFD with transition plans and simplifying implementation statements for small schemes.
Riddaway concluded: “We are at a key moment. If HM Treasury adopts the proposals outlined here — particularly the moratorium on reporting — we could see a short-term surge in UK investment and lay the groundwork for long-term growth in private markets.” Read Bobby Riddaway’s article in full here.
