Deforestation is a bigger concern for many pension savers than climate change, and a significant number want schemes to be doing more to tackle this issue.
Research among pension savers aged 40 or over found that four out of 10 (43 per cent) wanted the government to put pressure on schemes to transition away from investments that are driving deforestation.
This compared to just 36 per cent of respondents who support government policies to force pension scheme to mitigate for climate change.
The research found that 30 per cent of respondents said these factors might influence their choice of pension provider, with one in seven (15 per cent) saying that ESG is a consideration within their retirement investment strategy.
However a significant majority — 70 per cent — said they would not take ESG factors into account when selecting a pension.
The survey also found less than one in 10 (9 per cent) of these savers had incorporated ESG into their retirement strategy, and even fewer (7 per cent) have discussed their ESG preferences with an independent financial adviser.
The research was conducted by My Pension Expert. It said this research showed demand for more transparency around these issues, with almost one in two (45 per cent) wanting pension schemes to make ESG information more accessible.
My Pension Expert executive chairman Andrew Megson says: “British enthusiasm for ESG-based retirement strategies, and government policies, is evident. But without the right information, it will be impossible for Britons to make informed investment choices that support their personal ethics.
“It is vital that pension providers, schemes and investments make their ESG information available to the public – and this will likely only be achieved with the appropriate reporting guidance and effective education from regulatory bodies, as well as the government itself. Progress is being made on this front. However, the government and regulatory bodies must do more to push forward formal regulations and deadlines for such reporting if they are to encourage more people to incorporate ESG into their strategies.
