Smart Pension has announced that it has halved the emissions of its default growth fund.
This indicates advancement towards the company’s goal of having its default growth fund net zero by 2040 and is more than two years ahead of the 50 per cent reduction target it set in June 2022. It also aligns with the Paris Agreement’s objectives, which intended for emissions to be reduced by 45 per cent by 2030 and to zero by 2050.
The news comes after Smart Pension announced that starting in January 2023, it would be the first UK pension scheme to offer consumers a variety of sustainable lifestyle alternatives, including the Smart Pension default fund.
Smart Pension chief investment officer Paul Bucksey says: “We are delighted to announce that we have halved the emissions in our default growth fund. We are proud to be at the forefront of the UK’s sustainability drive, having committed to some of the most ambitious and challenging green targets in our industry, and we are already exceeding them.
“The pension industry has a golden opportunity to drive faster decarbonisation, by investing in businesses that are serious about cutting their carbon emissions. This is exactly why we have an unwavering focus on achieving our 2040 net zero target. We want to help our members secure not just long-term financial growth but also a safer, healthier world in which they can retire.”
Make My Money Matter CEO Tony Burdon says: “The ambition and progress displayed by Smart Pension is good to see. We welcome that Smart has acknowledged the critical role our pensions play in tackling the climate crisis and recognise the important work undertaken to integrate sustainability into its default offer.
“We know this is what savers increasingly expect from their pension schemes, and so this year we need the whole industry to meet this demand with accelerated action. Through robust stewardship, real-world emissions reductions and investments into industries that are tackling the climate crisis, schemes can shape a better, more liveable world for our retirement, all while delivering good returns for their members.”