The Pensions Regulator issued guidance Thursday to help U.K. pension trustees meet new standards for climate-related governance and reporting of both risks and opportunities.

Part of trustees’ responsibility is making sure that the external advice they get is relevant and competent, the regulator said in a news release.

“We recognize that the governance and reporting of climate-related risk is relatively new, so trustees may be more reliant on external experts while they build their scheme’s capability in this area,” said David Fairs, executive director of regulatory policy, analysis and advice for TPR, in the release.

“Trustees must take responsibility for ensuring their advisers have the appropriate skills and expertise and the advice they offer is relevant, helpful and represents value for money. After all, ultimately it’s trustees who are responsible for any decisions,” Mr. Fairs said in the release.

The finalized guidance and new reporting rules apply to pension funds with assets of £5 billion ($6.6 billion) and will be expanded to funds with £1 billion or more as of October 2022. The Department for Work and Pensions will consider extending the rules to smaller funds in 2023. A step-by-step guide is planned for 2022.

Mr. Fairs said in the release that the guidance “offers an opportunity for all trustees to improve their scheme’s structures and governance in relation to climate-related risk and opportunities in preparation for any expansion.”

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