Many of us are trying to make small lifestyle changes to benefit the planet and our futures, and so making sure that our pensions and investments are green will certainly help us meet our net zero targets! It is stated that £87 billion a year goes into Britain’s pension schemes, a figure that is predicted to increase over the next two decades, therefore we must make sure that our savings support a sustainable future.
Due to the lack of awareness, it is unbeknown to many that our savings actually threaten our futures. Nine times out of ten, our UK pensions go into default funds that unfortunately invest in big fossil fuel organisations. It’s important to know that financial products have an enormous influence on our environment, and pensions are no exception. More than a quarter of Brits aren’t aware of this and do not know their own workplace pension scheme at all.
How to make your investment funds greener?
Green pensions are becoming increasingly popular and it is stated that almost a fifth of UK savers are choosing an eco-friendly pension product. With more awareness given to green products, it is expected that the number in customers opting for greener pensions will increase. This means two things – not only will these funds make sure that responsible companies receive the financial backing to combat climate change, but it will ensure that we are all prepared to combat this climate crisis head on.
Furthermore, if more people who learn about the impact of pensions, and start taking action, the more those who design these funds will have to listen. There is not much point in saving for the future if your money is funding harmful, oil fuelled organisations that ultimately destroy our futures.
In order to prevent your pension funding climate change – we have created a simple, 2 step guide for you to take quick action:
If you’re self-employed:
- If you’re your own boss – you can obviously choose a sustainable pension yourself as you won’t be automatically enrolled into a pension scheme. A good place to start looking for a green pension is to simply research responsible options. You’ll then be making your hard earned money matter!
If you work for an employer:
- If you work for a company, unfortunately you don’t always get much say over your pension, but you can try – that’s what matters! Find out exactly where your investment funds are going (your HR team should help you understand this). If your pension does fund big unethical companies, speak to your colleagues and raise awareness. You could consider starting a petition to encourage your employer to move to a greener scheme. Don’t forget, doing this will be in their best long-term interest as more people become environmentally conscious.
People like to see businesses contributing to things that matter, and when a company shows that they are willing to hear their employees’ thoughts and opinions it can create a better working culture and certainly help businesses to retain employees and attract new talent!
The old fashion saying is that, ‘money is the route of all evil’ and this will remain true if we do not start to think about the way we save and spend our money. We must all practice responsible investments. However, with more people seeking better change for our planet, we can tackle this issue sooner rather than later.
It’s just about taking those important steps and ensuring that we encourage others to follow suit!
If you’re thinking of making green investments through renewable energy sources, our friendly and professional team are just a phone call away:
t 0330 0552155