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Pension Fund’s TCFD compliance hindered by private markets managers failing to provide climate data

Private markets managers are failing to provide their clients with the information they need to effectively manage climate risks, according to recent research by Hymans Robertson. 

The pensions and financial services consultancy warns that this lack of data has significant implications for both DB and DC pensions schemes’ ability to meet their governance and reporting obligations under TCFD.
The research aimed to assess the level of climate data asset managers could provide on their funds across four asset classes: private debt, private equity, real estate and infrastructure. It revealed a worryingly low level of engagement from some asset managers with just over two-fifths (42%) of managers providing data on all funds and a further 14% of managers providing data on some of their funds.  Nearly half of managers (44%) approached did not respond, raising concerns as to whether managers are prepared to meet expected requests for climate information.
Also highlighted by the research, was the significant variation in the depth of information disclosed by respondents, with the reporting of carbon emissions data not yet commonplace. Managers of property and infrastructure funds are better prepared with just under half – (44%) for property and 48% for infrastructure – providing data on carbon emissions. In contrast, private equity and private debt managers were able to report significantly less information on climate issues – no private debt managers in the survey provided carbon emissions data.

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