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Writer's pictureGill Kelley

How Green Is Your Pension?

A recent conversation at the Lot Climate Café reminded me that I wanted to check my pension providers, especially their policies regarding investments in fossil fuel companies. They say "Our purpose is to make retirement more rewarding and we recognise the importance of running a sustainable, responsible and ethical business in achieving this." There are a number of documents about actions they are taking, which is reassuring.


It's great to be proactive about checking your pension provider's policies regarding investments in fossil fuel companies. With the growing focus on environmental and social responsibility, many individuals are now looking to align their investments with their values.


Here are a few steps you can take to ensure that your pension provider is genuinely committed to sustainable and ethical investing:


1. Read Their Policies: As I've mentioned, it's a good start to read the documents about the actions your pension provider is taking. Look for specific details about their commitment to reducing or eliminating investments in fossil fuel companies and increasing investments in sustainable and ethical options.


2. Review Their Investment Portfolio: Check the actual investments in your pension portfolio. Do they offer fossil-free or ESG (Environmental, Social, and Governance) investment options? You may want to consider reallocating your investments to these options if they align with your values.


3. Check for Third-Party Ratings: Many organisations and websites rate pension providers and asset management firms based on their sustainability efforts. Websites like Morningstar, MSCI, or Sustainalytics provide ESG ratings and reports. These can offer an independent assessment of your provider's commitment to sustainability.


4. Engage with Your Provider: Don't hesitate to reach out to your pension provider and ask them specific questions about their investment policies. Inquire about their goals, their progress, and their transparency regarding their investments. They should be able to provide you with clear and detailed information.


5. Consider Ethical Funds: If your pension provider doesn't fully align with your values, you might want to explore the possibility of transferring your pension savings to an ethical or sustainable pension fund. These funds are specifically designed for people who want to invest in a socially and environmentally responsible manner.


6. Stay Informed: Continue to monitor your pension provider's actions and the industry as a whole. Sustainability and ethical investing are evolving, and pension providers may update their policies over time.


Remember that responsible investing is a growing trend. Many pension providers are working towards aligning their investments with sustainable, ethical, and responsible principles. By taking these steps and staying engaged with your provider, you can ensure that your pension investments better reflect your values and long-term goals.

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