UK Pension Regulator Sets Targets for Reaching Net Zero by 2030, 2050

The Pensions Regulator, the U.K.’s workplace pension watchdog, has outlined its strategy to become net zero against the emissions it has most control over by 2030, and net zero goal against all its operational emissions by 2050.

In its recently released net zero plan, TPR said it has established the accuracy of its carbon emissions and the interventions required to meet its goals. At the same time, the regulator acknowledged that it has intentionally omitted some value-chain emissions from its 2030 target due to the “great difficulty” of reaching sufficient emissions reductions by 2030. “For that reason, we have also set a secondary net zero target for 2050, which covers all of our operational emissions,” the report said.

“The current supply chain decarbonization rate is slow,” TPR said. “Therefore, to enable scope for greater emissions reductions, we have included supply chain emissions reduction in our 2050 target. As we move forward with this work, we will look to develop interim targets.”

The report said TPR will aim to reduce supply chain emissions by engaging with its suppliers across certain sectors – including digital and technology, professional services and consultancy, learning and development, and outsourced support services – which it said currently account for more than 80% of purchased goods and services emissions.

“We will look to categorise our suppliers based on their progress towards decarbonisation, endeavouring to facilitate progression for the suppliers that are further behind in their journey,” TPR said.

TPR said it is committed to reducing its operational emissions in relation to gas, electricity, business travel, water and waste by at least 90% by 2030, adding that it will buy carbon credits to offset the residual emissions remaining. It also said it will cut by at least 90% all operational emissions, including those from its supply chain and employee commuting, by 2050, while offsetting the remainder by buying more carbon credits.

The regulator acknowledged that seeking to offset a large volume of residual emissions through buying offsets places it “in danger of being criticised for greenwashing,” noting that the European Parliament reached a provisional agreement last year banning claims that a product has neutral, reduced or positive impact on the environment based on emissions offsetting plans.

“Therefore, we will ensure that when we arrive at 2030, our emissions will be as low as we can reasonably and feasibly get them,” TPR said. “Where offsets are required, we will only purchase carbon credits which are suitable and of reputable quality, and that reflect the removal of greenhouse gas emissions from the atmosphere.”

TPR said that when buying the offsets, it will adopt a portfolio diversification approach used by the finance sector, and that they will provide support to a balanced mix of carbon removal projects intended to reduce potential risks while distributing funds across a range of projects.