News

17 April 2026

Tackling climate change has become a key consideration for governments and businesses across the world. For the trustees of pension schemes, this means understanding the associated risks and opportunities of climate change and placing a greater focus on how they invest.

UK regulations require trustees of pension schemes with more than £1bn in assets to meet certain climate governance requirements and publish an annual report on their schemes’ climate-related risks. The MSD Human Health Pension Scheme had over £1bn in assets as at 31 December 2021. The Trustee is therefore required to report on its climate-related risks.

The MSD Animal Health Pension Scheme had less than £1bn in assets as at 31 December 2021 and so it is not in scope for a formal report. However, the Trustee is mindful of the climate related risks when setting the Scheme’s investment strategy.

 

The Task Force on Climate-related Financial Disclosures (TCFD) report for the year ending 31 December 2025 is now available on the documents page.

 

Key findings from the 2025 Climate Disclosures

Climate change is now embedded in governance and decision‑making
The Trustee has an established climate governance and risk‑management framework, integrated into its existing investment and risk processes. This includes regular monitoring, defined roles for the Trustee and its advisers, and annual TCFD reporting (see pages 3–4 of the report).

Clear climate‑related objectives and strategy
The Executive Summary sets out the Trustee’s overall approach to managing climate‑related risks and opportunities and how this is reflected in the Scheme’s investment strategy and manager selection. It also explains how climate considerations are taken into account alongside other funding and investment objectives (see pages 3–5).

Scenario analysis
The report summarises that climate-related scenario analysis has been carried out to assess how different climate pathways could impact the Scheme’s investments and funding position, and to inform strategic decision making (see page 8).

Use of climate metrics and targets

The Trustee monitors portfolio‑level climate metrics, including carbon footprint and emissions measures, and compares them with last year’s figures. The report notes that these metrics have improved over the year. (see pages 10–13).

Progress towards targets

The Trustee recognises that it has limited ability to influence the emissions of the LDI and bulk annuity assets held by the Scheme. As such, the Trustee has set a target to reduce the carbon footprint of our equity investments, where it can focus on having a greater influence. The equity carbon footprint has decreased by 22% p.a. since 31 December 2021, exceeding the Trustee’s target of 7% at the time (see page 13).

Your new, simpler MSD pension website is now live

You can now access our new, improved pension website designed to make it easier and quicker for you to find the information that you need.

The refreshed site offers:

• Easier access – No login details or passcodes needed.
• Streamlined content – Clear, concise information focused on what really matters to you.
• Clearer navigation – Simple menus to help you get straight to the page you need, including your secure MSD pension account.
• A refreshed MSD look – Updated design to make the site more engaging.
• Better on every device – Fully optimised for laptop, tablet and smartphone, so you can use it wherever you are.
• New access to exclusive deals and discounts – Year-round savings on shopping and retail offers through Aon Discounts.

Please explore the new site and see what’s available to you.