People are increasingly aware of the impact their money can have on companies and supply chains, and by extension the environment.
But they seem to be stuck when it comes to their retirement savings.
A survey commissioned by campaign group Make My Money Matter, which was co-founded by Four Weddings and a Funeral writer and director Richard Curtis, found that 44% of pension holders – equating to roughly 18 million people – would switch to a ‘green pension’ if offered one.
It also found that 61% of respondents want their pension to play an active role in fighting climate change.
But 80% have never considered whether their monthly contributions could be accelerating global warming.
With 63% admitting to having no idea where their money is currently invested.
Funding oil & gas giants?
It appears that poor transparency from employers and pension providers is driving scepticism and pessimism among scheme members.
Almost half of savers do not think that their employer adequately communicates where their scheme is invested and a further 43% feel that their provider doesn’t offer enough information.
This lack of clarity means only 12% of pension holders think their retirement funds are currently having a positive impact on people and the planet.
Among the biggest worries are that their pensions may be funding oil & gas giants, weapons manufacturers or companies with links to deforestation.
Hidden superpower
Commenting on the findings, Curtis said: “This research absolutely confirms what our campaign and many others have been saying – that UK savers want their money invested in ways which help tackle the climate crisis. But are held back by a lack of information, poor communication and limited choice.
“As people across the UK increasingly engage with all the things we can do fight climate change – from the food we eat to the clothes we wear and how we travel – 80% of us never think about how our money could actually be contributing to the climate crisis.
“Having a sustainable pension can make our money matter and be one of the most powerful tools we have to change the world. We must urgently change this and unlock the hidden superpower hiding within our pensions.”
He continued: “To do this, we’re calling for all pension providers to commit to Net Zero targets by COP26, ensuring that the UK becomes a true global leader in green pensions. We know that continued investments in unsustainable businesses are bad for the planet and go against the wishes of the majority of UK savers. They are also increasingly bad for returns and sustainable pensions are now delivering excellent returns.
“Now is the moment for the pensions industry to respond, and make sure that the £3trn ($4.16trn, €3.46trn) invested in our pensions actually helps to build a world we want to retire in.”
Editor’s Note: In association with our sister publications, International Adviser has launched a Campaign for Better Governance.
It will see us shine a spotlight on investment companies as well as the businesses in which they invest.
