UK master trusts show progress on climate policy but gaps remain

UK master trusts have shown progress on climate change policy advocacy, but key gaps remain, a study revealed.

In light of COP30 bringing global attention on policies and intervention needed to deliver a net-zero future Lane, Clark & Peacock (LCP) analysed sixteen of the UK’s largest master trusts, representing over £200bn in assets.

The findings reveal an increased awareness of climate policy advocacy but also illuminated key areas where further action is required.

LCP assessed these master trusts against its view on “best practice” in climate change policy advocacy, which outlines seven key principles for climate policy advocacy.

The seven principles are: clear policy views, defined strategies, strong governance, adequate resourcing, diverse engagement methods, stakeholder engagement and transparent disclosure.

Some of the findings of the study revealed that few master trusts articulate clear views on climate policy which are publicly available. The ones that do, typically, are hidden within scheme documents, the study found.

Moreover, most master trusts have broad sustainability frameworks, but few publish distinct climate advocacy strategies. The study found that they mostly focus on company engagement.

In addition, most master trusts keep internal records of policy interactions, but few disclose them publicly.

LCP said that even where full disclosure is not possible, a summary of key themes and outcomes enhances accountability and member confidence.

As a result of these findings, LCP is urging master trusts to prioritise three key areas in climate policy advocacy.

This includes clarifying and publishing their climate policy positions. Secondly, strengthening governance and oversight of engagements with policymakers.

Lastly, increasing transparency in their climate advocacy activity and the outcomes of policy interactions.

Nigel Dunn, partner at LCP, said: “Some of the biggest risks we face today, including climate change, are systemic. Policy makers around the world have gathered at COP30 to find a way forward to a net-zero global economy. Master trusts need to play their part and are well placed to play a larger role in shaping the climate transition because of their natural influence across the market and their position as credible long-term stakeholders.”

Natalie Porter, consultant at LCP, added: “It is positive to see more awareness of the role climate policy advocacy plays. Across the master trust market, there is now a clearer understanding that policy engagement is essential rather than a ‘nice to have’. To build on this progress, more work is needed to strengthen this area further.”