Half of pension savers wish to ensure their pension is invested in companies with environmentally and socially sustainable investments, according to new research by net zero pension provider Cushon.
This figure was even higher (60 per cent) among millennials.
Cushion also found that there are several misconceptions concerning the regulation of pensions, with 48 per cent of respondents mistakenly believing that pensions can only be invested in companies that do not have a negative environmental impact, or else unaware if there are rules on this.
45 per cent state they believe there should be rules around the impact of pension investments on climate change.
This follows previous research from Cushon, which found that the average UK pension pot finances 23 tonnes in carbon emissions each year through the companies it invests in.
Cushon’s previous ‘Pensions Funds and the Climate’ research found that 62 per cent of employees who belong to a workplace pension scheme would engage more with their pension if they knew it was having a positive impact on climate change.
Commenting on the results, Ben Pollard, founder and CEO of Cushon, says: “People clearly want their pensions to be a force for good, and to have a positive impact on things they feel strongly about.”
“With all this confusion and misunderstanding, pension providers need to work faster to enable savers to have their voices heard and to align investments with fundamental issues like the fight against climate change.”
Cushion is set to launch a new investment strategy in early 2022 to leverage the potential for higher investment returns and focus on greener companies with improved long-term projections.
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