
Few people are aware of what their pension is invested in, let alone how their pension provider incorporates Environmental, Social and Governance (ESG) matters into the process.
Almost two-thirds of UK Pension holders say that they didn’t know their pension could be invested in ways to help fight climate change, and with 41% saying that they would like their pension to be invested responsibly, there is potential for collective power to protect the planet. Many people are no longer just concerned about getting the best returns, they also want their money to be used in a way that helps society and the planet.
Over a third of pension schemes have already set targets to reduce their exposure to climate related risk but over four in ten schemes have yet to consider climate risk targets at all. UK pension schemes are a massive influence on the financial services industry, including how climate-related risk and opportunities are identified, assessed, and managed. The pension industry is starting to rise to this defining challenge of our age, but pension scheme members can continue to collectively push for more action, more quickly.
By deciding to invest in ESG focused funds, investors can have a positive impact in the fight against climate change, as well as other social issues that face the world. These funds still aim to make a profit, meaning that you receive a financial return without sacrificing your social, moral, or religious principles.
Many pension providers offer ethical funds for their investors, meaning you can save for retirement with a clear conscience. If you would like to start investing in a greener future or to have a review of your current investment strategy, get in touch for a chat about how I could help you along the way. Either call me on 07774 264356 or email nkidby@chilternconsultancyltd.com
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