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New analysis of Pension Providers' action on Climate Change

'Make My Money Matter' is an organisation that helps people 'green' their money - which is one of the most important things many of us can do.

They say that:

'greening your pension reduces your carbon footprint 21x more than if you gave up flying, went veggie and switched energy provider combined.'

Yesterday they published a report which ranked the UK’s largest 20 Defined Contribution pension providers on their approach to tackling climate change.

If you have a pension, it's definitely worth having a look. After all, there is 3 trillion pounds invested in UK pensions alone and the impact of these investments can't be underestimated.

Unfortunately, the results are not encouraging.

  • Just three providers (Aviva, Legal & General and Nest) have ‘adequate’ climate plans in place

  • The four worst performing providers (Mercer, Hargreaves Lansdown, The People’s Pension and SEI) have ‘poor’ plans, scoring on average just 1/10 across all measures

  • On both fossil fuel financing and deforestation and land-use all providers were found to be 'inadequate' or 'poor'

Their recommended action points are:

• SAVERS can raise this with their pension provider (the Make My Money Matter website helps do that easily).

• EMPLOYEES can share the ranking with their employer to highlight their provider’s performance and encourage action if it doesn’t match your company’s climate agenda.

• EMPLOYERS can engage directly with their provider and move to a greener provider if necessary.

Our previous blog post shared new research which found that inadequate progress in addressing climate change is not due to a persistent lack of individual support for climate-friendly actions. In fact,

69% of the global population expresses a willingness to contribute 1% of their personal income to fight global warming,
 86% endorse pro-climate social norms.

So taking action on greening your pensions is likely to be popular with your colleagues, as well as help to

'.. move from the damaging, destructive industries of the past, and into the cleaner, greener businesses powering the transition to a more sustainable world.'

You can see the full report here.



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