A new scheme has been launched to help make Britain’s £3 trillion pension pot more sustainable.
Make My Money Matter aims to drive systemic change in the pension industry by “putting people and the planet alongside returns” and has called on the government to ensure that all pension funds report on their commitment to net zero emissions by 2050.
A total of 21 organisations have already joined the initiative including Oxfam, WWF, Comic Relief, Triodos Bank, BNP Paribas, Ecotricity, and the Environment Agency Pension Fund, one of the UK’s largest local government pension schemes.
It notes nearly a third of people with a pension say they now care even more about the impact their pension has on people and the planet compared with before the coronavirus pandemic and 57% of the respondents say they want to see their pensions invested in building a better future for people and the planet post-coronavirus.
More than half state they want their pensions to be part of the solution in tackling climate change.
Mark Carney, United Nations Special Envoy for Climate Action and Finance, and Former Governor of the Bank of England, comments: “By helping align finance with society’s values, the Make My Money Matter campaign can support the whole economy transition required to achieve net zero. This could turn the existential risks from climate change into the greatest commercial opportunity of our time.
“Private finance, including pension funds, will provide the $3.5 trillion (£2.8tn) needed annually for investments in sustainable infrastructure and fund the innovation and re-engineering of business in every sector of the economy. Make My Money Matter and our work for COP26 will help investors disclose how their client’s money is supporting these investment needs, so people can decide whether their priorities are being met. This will help deliver the world that our citizens demand and that future generations deserve.”