UK pension industry’s carbon footprint ‘larger than that of the entire nation’

UK pension schemes fund the release of an estimated 330 million tonnes of carbon dioxide every year, new research suggests

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UK pension schemes are responsible for funding more emissions than those that make the entire UK’s carbon footprint.

That’s according to a new report by Make My Money Matter and the research house Route2, which estimates the investments in the UK pension industry enables the release of 330 million tonnes of carbon every year.

That’s more than the nation’s entire carbon footprint based on the publicly available data by the Office for National Statistics.

The analysis suggests pension schemes invest an estimated £112 billion in fossil fuels.

That means for every £1,000 invested around £60 supports the fossil fuel industry.

Richard Curtis, Co-Founder at Make My Money Matter, commented: “While we’ve seen green shoots of progress with voluntary net zero commitments, £2 trillion remains in schemes which have failed to act, undermining the UK government’s own net zero targets.”

Last week, new research found that almost 70% of leading UK schemes have not made robust net zero commitments, leaving nearly £2 trillion misaligned with the Paris Agreement.

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