Lambeth's Pensions Committee has reviewed the risk ratings of its pension fund, with a particular focus on the potential impact of climate change. During a meeting on Wednesday, January 7, 2026, the committee examined an updated risk register, specifically discussing risk PA 19, climate change.
One committee member expressed concern that the current risk rating for climate change was too low. They pointed to rising insurance premiums and the costs of extreme weather events
as evidence that the risk's likelihood and impact should be significantly increased on the register to reflect its growing significance. This concern was raised in the context of the committee's overall assessment of the fund's financial exposure and its ability to meet pension obligations.
In response, officers explained that the pension fund's revaluation process already accounts for climate risk. They further clarified that the funding strategy is stress-tested for such risks, incorporating an extra margin of prudence included for difficult-to-quantify risks.
This approach aims to ensure the fund's resilience against various financial challenges, including those stemming from climate-related events.
The committee's discussions are documented in the Public Reports Pack Wednesday 07-Jan-2026 18.30 Pensions Committee.
