Read all our latest articles

News

Revealed: How to make your pension greener and why you should now

Category: News
Small girl planting in a garden

Filmmaker and Comic Relief co-founder Richard Curtis launched the Make My Money Matter campaign back in 2020.

With around £3 trillion invested in UK pensions, the campaign aimed to ensure that as little of that money as possible is invested in industries like fossil fuels, tobacco, and arms.

If you’re interested in investing sustainably, you might be surprised to learn that, according to Make My Money Matter, “greening” your pension is 21-times more effective for reducing your carbon footprint than giving up flying, becoming a vegetarian, or switching to a renewable energy provider combined.

Keep reading for a closer look at the principles behind ESG investing, plus how and why you might choose to “green” your pension.

ESG investing means concentrating on firms with good environmental, social, and governance credentials

Investing sustainably means thinking about where your money is invested, and prioritising those companies with a good track record in three key areas:

  • Environmental impact, including energy use and efficiency, its carbon footprint, and its attitude toward sustainability
  • Social factors, including ethical treatment of workers, commensurate pay, and how a company is positioned within its community
  • Governance, which looks at how a business is run, from transparent accounting practices to tax and the election process for board members.

A continued focus on the environment, and social issues like equal rights and pay, appears to have increased consumer demand for ESG advice.

Professional Adviser recently reported that 90% of client/adviser conversations include a look at ESG and sustainability factors. This highlights just how far sustainability has come, entering the mainstream and cementing its place there.

There is work to do, globally, though. Despite an increased need to decrease reliance on Russian oil following the country’s invasion of Ukraine, the transition to green energy is in danger of being overtaken by the need for energy security.

Investing in line with the targets of the Paris Agreement could now mean no longer aligning with the UK government, which has come under fire lately for projects that some say undermine our national sustainability goals.

There are also continued worries about “greenwashing” and a lack of representation on company boards.

The government, though, has voiced commitment to its Paris Agreement targets. Sector growth, meanwhile, is leading to increased legislation and accountability.

But what does all this mean for your pension?

You can “green” your pension by aligning your money with your values on ESG issues

Make My Money Matter suggests that switching your £100,000 pension into ESG investments could reduce carbon emissions by 64 tonnes.

That makes “greening” your pension 21-times more effective for lowering your carbon footprint than stopping flying, becoming a vegetarian, and moving to a renewable energy provider combined.

At Hartsfield, we can help you to align your money with your values through our responsible portfolios.

They are specifically designed to achieve your personal objectives while remaining aligned with the UN’s Sustainable Development Goals.

These goals seek to address issues of poverty, inequality, climate change, environmental degradation, peace and justice globally. And while the available funds do not yet cover all of the UN’s Sustainable Development Goals, the market is growing fast.

Get in touch now if you’d like to discuss our responsible portfolios.

Greening your pension could give you peace of mind and doesn’t mean sacrificing returns

As worrying headlines continue to point toward a global climate tipping point, the Intergovernmental Panel on Climate Change (IPCC), as reported by the Guardian, recently delivered a “final warning” on the climate crisis.

The body, comprised of the world’s leading climate scientists, confirmed that only swift and drastic action could stop rising emissions pushing the world to the brink of irrevocable damage.

The report’s stark warning took eight years of research to compile, and the combined knowledge of hundreds of scientists.

If you decide to act now and “green” your pension, you might find that knowing that you are doing your bit for the environment helps to allay some of your fears. This is likely to be especially true if you have grandchildren.

Thanks to the rising popularity of ESG investment, an increased number of funds now exist, and greater inflows have helped to improve the returns available. As with any investment, there is risk attached, but you can be more confident than ever that investing in line with your values doesn’t mean sacrificing returns.

Get in touch

If you would like to discuss aligning your investments with your values of sustainability and ESG issues, or you have questions about any other aspect of your long-term financial or retirement plans, please get in touch and find out how our team of expert planners can help.

Please note

The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.

Get in touch

Ready to take the next step towards your financial goals? Call or email your local office to book a free financial consultation. Better still, pop in and see us. And if you’re short on time, just leave us a message here and we’ll call you.

Bristol Office

Cheltenham Office

Wiltshire Office