Pension schemes worth £200bn fail to set net zero targets: MMMM

Climate campaign group Make My Money Matter has named and shamed 20 of the UK’s largest pension schemes that are yet to set net zero targets.

All are single-employer trusts that between them have more than £200bn of assets. In contrast all of the main master trusts and GPPs operating in the workplace pensions market now have  2050 net zero goals in place, with some providers targeting earlier dates.

Make My Money Matter points out that many of these single trust schemes are sponsored  by high profile brands which claim leadership on sustainability across their business operations – but have so far not translated these goals to their company pensions. 

For example, Boots and Vodafone have committed to net zero by 2040, and car manufacturer Ford has said it will reach carbon neutrality by 2050. Yet each has a pension misaligned with these goals.

Make My Money Matter says that based on market averages, investments of the size of these pension funds could enable 24 million tonnes of carbon each year, which equates to the carbon footprint of more than 3 million UK citizens.  It  adds that these contradictions mean that the billions managed by their pension schemes could be undermining the hard work these businesses are doing to fight climate change – highlighting the need for all businesses to integrate pensions fully into their sustainability strategies.

Film maker and activist Richard Curtis, co-founder of Make My Money Matter says: “Leading businesses are urgently acting on sustainability, but it turns out many are missing an enormous trick – their pensions.

“Now is the time for all businesses to integrate their pensions into their sustainability plans, at the same time as pension funds are being asked to acknowledge the urgency of the moment and themselves set robust net zero strategies.”

MMMM senior finance adviser Huw Davies adds: “We want to see all pension schemes set credible climate targets. Recent ambitious climate commitments from the pension schemes of Royal Mail, Co-op and M&S show that this is possible. Other schemes now need to follow, and corporate sponsors should back their schemes to act on climate. Failure to do so risks the very futures our pensions are there to provide for.”

The 20 largest UK pension schemes that have yet to set net zero targets are listed below

1. BMW Operations Pension Scheme
2. Boots Pension Scheme
3. BP Pension Fund
4. British Airways Pension Schemes (Airways Pension Scheme and New Airways Pension Scheme)
5. British Coal Staff Superannuation Scheme
6. British Steel Pension Scheme (Tata Steel)
7. Centrica Pension Schemes
8. Diageo Pension Scheme
9. Ford Salaried; Hourly Paid Contributory & Senior Staff Pension Funds
10. IBM Pension Plan
11. ICI Pension Fund
12. Lothian Pension Fund
13. Mineworkers’ Pension Scheme
14. Northern Ireland Local Government Officers’ Superannuation Committee
15. Prudential Staff Pension Scheme Defined Benefit Section
16. RWE Group pension scheme
17. Santander Group Pension Scheme
18. Shell Contributory Pension Fund
19. Vodafone Group Pension Scheme
20. Zurich Financial Services UK Pension Scheme