The University of Oxford Staff Pension Scheme (the “Scheme”), through its Trustee, OSPS Trustee Limited, recently published its “Climate disclosures for year ended 31 March 2025” in October 2025. This report details the Scheme’s approach to managing climate-related risks and opportunities, aligning with the Taskforce for Climate-related Financial Disclosures (TCFD) framework.
Refreshed Climate Scenario Analysis for Enhanced Resilience Assessment
For the fiscal year ended March 31, 2025, the Trustee refreshed its climate scenario analysis following investment strategy changes. The analysis, which includes five climate change scenarios plus a base case, indicates that the Scheme possesses a good degree of resilience to climate-related risks. This resilience is primarily attributed to the high level of asset diversification and liability hedging. The Trustee concluded that the Scheme’s investment portfolio exhibits reasonable resilience across all climate change scenarios, with the disorderly transition remaining the worst-case scenario for the Scheme, showing a deterioration in funding level after a decade. Based on this analysis, the Trustee does not plan immediate actions but will continue to reduce investment risk in line with its flight plan and consider climate-related opportunities. (Source: Climate disclosures for year ended 31 March 2025, page 5, 22, 24)
Targeting Improved Carbon Emission Data Coverage by 2026
For the fiscal year ended March 31, 2025, the Trustee reaffirmed its target to achieve above 80% coverage of carbon emission data across all asset classes (Scopes 1, 2, and 3) in the DB Section, and above 95% coverage across all asset classes (Scopes 1, 2, and 3) in the DC Section, by December 31, 2026. This target was initially set in 2022, using data as of December 31, 2021, as the baseline. The rationale for this target is to enhance the accuracy of carbon emission measurement, as meaningful data from investment managers is crucial for effective climate risk management. The Trustee believes this target remains suitable. (Source: Climate disclosures for year ended 31 March 2025, page 5, 45, 47)
Engagement with Managers to Address Data Coverage Decline
For the fiscal year ended March 31, 2025, the Trustee observed a decline in data coverage for Scopes 1 & 2 in the DB Section, particularly for Illiquid Credit and Other Illiquid assets. This decrease was attributed to changes in methodology by some managers. The Trustee, with support from its investment consultant, is engaging with these managers to understand the reasons for the decline and to identify opportunities to improve coverage or investigate alternative data sources. Additionally, the Trustee will encourage managers to adopt the Investment Association’s Carbon Emissions Reporting Template to ensure consistent reporting. (Source: Climate disclosures for year ended 31 March 2025, page 5, 41, 46, 48)
Divestment from Threadneedle Property Fund
During the reporting year, the Scheme fully divested from the Threadneedle Property Fund. Consequently, this fund is not included in the current TCFD reporting. (Source: Climate disclosures for year ended 31 March 2025, page 36)
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