06/30/2026
Do YOU know what’s in your retirement?
Climate Change ‘Now a Central Factor in Pension Outcomes’
The Society of Pension Professionals (SPP) has published Pensions in a Warming World, a thought leadership paper warning that climate change is becoming a defining factor in pension outcomes, funding strategies and retirement security across the UK.
The report makes the case that climate change is no longer simply an environmental issue. It says it is an economic, financial and governance challenge that could reshape investment returns, inflation, employer covenant strength, insurance markets and the long-term value of pension savings.
With UK pension schemes responsible for trillions of pounds of assets and retirement promises stretching decades into the future, the paper claims that pension schemes cannot diversify away from a changing climate.
The SPP's analysis examines how different climate pathways, from early and co-ordinated action to delayed transition or escalating physical impacts, could lead to dramatically different financial outcomes for Defined Benefit (DB), Defined Contribution (DC), Collective Defined Contribution (CDC) and public sector pension schemes.
The report concludes that while climate risks remain uncertain, the cost of ignoring them is increasingly clear.
The Society of Pension Professionals (SPP) has published Pensions in a Warming World, a thought leadership paper warning that climate change is becoming a