U.K. retirement plans with at least £5 billion ($7.1 billion) in assets will be required to assess and publicly report climate change risks in their portfolios starting in October under regulations presented to Parliament on Tuesday.

The new regulations, which are subject to parliamentary debate, fall under the Pension Schemes Act 2021 and will require trustees to identify and evaluate climate risks and opportunities that may affect investment strategies over the short, medium and long terms.

Investors will also be required to disclose in annual reports the carbon emissions of their portfolios. They must conduct scenario analysis, select and calculate climate metrics that impact on the portfolio, and set climate targets and review performance against them.

For this purpose, investors will use Taskforce for Climate-Related Financial Disclosures standards. The measures will be extended to plans smaller than £5 billion starting in 2024, the U.K. Department of Work and Pensions said in a news release.

“These world-leading regulations we outline today ensure these risks are accounted for, and are done so with total transparency,” Guy Opperman, U.K. minister for pensions and financial inclusion, said in the release.

Read more @Pionline