Hymans Robertson, Pensions For Purpose, Make My Money Matter, the Impact Investing Institute and Trustees of the Reach Pension Plan would like to invite trustees and governance committees of pensions schemes across the UK, as well as leaders in our industry, to support our aim to make a climate impact option available to all DC members.
We believe a group of pension plans will have the greatest voice to create the demand for providers to develop and make a climate impact option available to up to 4 million DC savers.
You can register your interest in supporting us by signing up below. If the download form doesn’t load click here. Please find more information below, including more on what your commitment would involve.
What commitment does this initiative involve?
Your involvement could be as small as lending your name to support the initiative, or you could help us establish some high-level principles for a climate impact option which will be used to guide providers. Importantly, there is no contractual commitment – we are purely looking for your support to help grow the voice of asset owners and industry leaders to create the demand for providers to address the needs of as many as four million DC savers.
“Register today to help in our efforts. A group of pension plans will have the greatest voice, and pool of assets, to compel providers to make a climate impact option available to members.”
Millions of pension savers crave climate friendly investments but are currently underserved.
The Defined Contribution Investment Forum, in its July 2020 report The Key to Unlocking Member Engagement, found that 30% of members wanted a climate friendly option, and that risk, return and cost were less of a concern for them.
Many small and medium-sized pension plans would struggle to add a climate impact fund for their members due to cost and governance implications. This initiative aims to ensure all members, regardless of the size of their scheme, can get access to a climate impact option.
There could be as many as four million pension savers who do not have access to the investment option they desire. However, we acknowledge that many pension providers have made great strides and others have plans to, but there is so much more that the industry could be doing.
We want to address this mismatch by creating the demand for pension providers to make available a climate option for members, so savers across the UK can choose for their money to have more of a positive impact to address climate change.
The DCIF clearly identified that members care about addressing climate change.
This view is supported by other member studies and anecdotal evidence from recent years. Climate impact investing means that every pound of members’ assets would be invested in companies and projects that are making an intentional and measurable effort to reduce carbon emissions and support our transition to a low carbon world.
We think the transition to a net zero-carbon economy presents some of the best potential opportunities for members to enhance their retirement outcomes.
Impact investing also provides an opportunity to engage much more effectively with members, by demonstrating the positive impact their money is having to address the issues they care about.
What commitment does this initiative involve?
By lending your support to this initiative, you agree to the use of the name of your pension scheme or organisation so we can create a large voice for providers to take action.
Supporting Statements
Commenting on the importance of working collectively across the pensions market
1/5
While we recognise that a number of providers have made great strides in this by making these options available and many have plans to, there is so much more that the industry could be doing. We believe that working as a united industry, with one voice, can create real change and together we can encourage providers to make climate options available to all members and make a difference.
Callum Stewart - Senior DC Investment Consultant at Hymans Robertson
2/5
By working together with Trustees and Governance Committees of other pension plans, I would hope we can compel providers to create a climate impact investment for us all that would offer our members value for money and increased engagement to help produce better retirement outcomes.
Paul Rhodes - Member-Nominated Trustee for Reach Pension Plan
3/5
We believe that this initiative will help raise awareness of the power of our pensions and provide consumers with more voice and choice over where their money goes. This is an important step to ultimately ensuring that all pensions are climate friendly; building a healthy planet as well as securing healthy returns.”
David Hayman - Campaign Director at Make My Money Matter
4/5
Pensions for Purpose is pleased to support this initiative that will help savers across the UK access a climate impact option in their pension funds.”
Karen Shackleton - Director of Pensions for Purpose
5/5
The Impact Investing Institute is happy to support this initiative that seeks to provide a climate friendly impact investing option for Britain's pension savers.
Sarah Gordon - Chief Executive of the Impact Investing Institute