44% of pension holders would switch to a green pension if they were offered one by their provider, according to a new survey commissioned by Make my Money Matter.
There’s currently £3 trillion in UK pensions, and these investments are often in areas that lead to exploitation and extraction, such as fossil fuel or tobacco production.
However, many savers appear to be kept in the dark about this, with almost two thirds (63%) of respondents admitting to having no idea where their pension is currently invested.
The survey confirms that the majority of savers want their investments to build a healthier planet, with over half (61%) of pension holders stating that they want their pension to play an active role in fighting climate change rather than contributing to it.
Over half (55%) of pension holders say they would switch provider if they uncovered that their pension was invested in deforestation or labour rights violations and just under half would do the same if their money was found to be funding fossil fuels (41%) or the production of weapons (49%).
Richard Curtis, co-founder of Make My Money Matter said: ‘This research absolutely confirms what our campaign and many others have been saying – that UK savers want their money invested in ways which help tackle the climate crisis. But are held back by a lack of information, poor communication and limited choice.
‘We’re calling for all pension providers to commit to Net Zero targets by COP26, ensuring that the UK becomes a true global leader in green pensions. We know that continued investments in unsustainable businesses are bad for the planet and go against the wishes of the majority of UK savers. They are also increasingly bad for returns and sustainable pensions are now delivering excellent returns.
‘Now is the moment for the pensions industry to respond, and make sure that the £3 trillion invested in our pensions actually helps to build a world we want to retire in.’