There has been a call for the government to consider climate change risks in its any review of the pension system.

The chief executive of the UK Sustainable Investment and Finance Association, James Alexander, has written to the Pensions Commission.

In the letter he warned that climate change risks and the opportunities of the net zero transition “cannot be divorced” from any review into the pension system.

He wrote: “As we approach 2050 and beyond, and as global temperatures continue to increase, the overall value of UK pension portfolios could be put at immense risk due to physical and transition-related climate risks.”

While Alexander welcomed the relaunch of the Pensions Commission he asked that the Commission “at a minimum” highlight the need for the review to consider climate change.

“From our perspective, climate change cannot be divorced from the main focus areas highlighted in the Commission’s terms of reference,” he added.

He claimed climate change and wider sustainability factors should be seen as “inextricably linked” to the scope of the Commission’s work.

Alexander said that alignment of the UK’s pensions system with the transition to a sustainable economy could unlock opportunities for investors.

More broadly Alexander urged the commission to consider gradually raising auto-enrolment pension contributions over time and to take action on the gender pay gap in pension savers.

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