£1 trillion of UK pension money is now in schemes committed to robust net-zero as pension funds of all shapes and sizes begin to integrate climate risk into their investment strategies, according to Make My Money Matter research
The research found that public awareness of the link between our money and climate change has increased significantly since the beginning of 2021, as have expectations for providers to offer green pensions to their customers. The campaign group has seen a 50 per cent increase in savers’ awareness of the link between their pensions and climate change.
Businesses across the UK have also begun to incorporate pensions into their climate change strategies, with household names such as Tesco, IKEA, Brewdog, and Innocent Drinks among the 71 companies and organisations that have signed up to Make My Money Matter’s Green Pensions Charter, which means that they will pledge to investigate greening their company pension scheme so that it is invested more sustainably and is aligned with net-zero.
These steps are part of a larger social movement backed by high-profile figures such as Stephen Fry, Christiana Figueres, and Mark Carney to ensure that pension funds’ investments on our behalf are addressing the climate crisis rather than fueling it.
But £1.7 trillion of UK savers’ money is still invested in schemes that have yet to comply with the Paris Climate Agreement, which means that millions of savers’ pensions continue to fund the worst polluters.
Make My Money Matter says the onus is now on the remaining schemes to act and ensure that all UK pension investments are aligned with robust net-zero targets. Savers who want to make a difference with their pension can contact their provider directly and request a change.
Make My Money Matter co-Founder Richard Curtis says: “Since we launched in June 2020, we have seen a range of providers step up to the plate on climate change by committing to robust net-zero targets. This movement has seen an incredible milestone at the turn of the year, with £1 trillion of UK pension money now committed to aligning with the Paris Climate Agreement – a huge success for climate campaigners.
“However, with time running out, £1.7 trillion is still in schemes that have failed to make robust commitments, and we have a pensions industry that enables a staggering 330 million tonnes of carbon to enter our atmosphere every year – equivalent to the UK’s annual carbon footprint – so urgent action is needed right now.
“That’s why this year our campaign will be working to ensure the entire UK pensions industry is aligned with robust net-zero, while eradicating other harmful practices from our pensions, such as deforestation. In doing so, we can help protect the planet, protect savers’ returns, and ensure our pensions are building a world worth retiring in to”