On the go: The Co-op has partnered with the Make My Money Matter campaign to engage with its employees in order to increase transparency on how their pension pots are invested and better understand their sustainability priorities.
The partnership was announced amid a wider statement from the retailer on a 10-point plan it is enacting to achieve net-zero by 2040.
The move builds on changes that the Co-op and its scheme trustees made in 2019 to introduce a sustainable, lower-carbon default option for its defined contribution pension scheme.
While the partnership with Make My Money Matter will encompass all Co-op pension arrangements, the focus will be on its Pace DC scheme.
“All benefits currently being built up by Co-op colleagues are in Pace DC, so we’re focusing our member engagement here where the investments are likely to be longer term and where members have their own pots and a more direct link to the assets,” the retailer explained.
The Co-op will also work with fund managers to understand how they plan to align themselves with a move to a net-zero economy, and its largest pension scheme is also committed to reporting on its carbon footprint annually from next year.
From products and packaging to power and pension fund investments, the Co-op’s 10-point plan details how the group will reduce the impact of its operations and products across its food, funeral care, insurance and power businesses in order to achieve net-zero by 2040.
The retailer will aim to set clear, short-term milestones. By 2025 it aims to reduce the impact of its operations by 50 per cent and its products by 11 per cent, in line with climate science.
The plan will also see the Co-op compensate for its climate impact by taking responsibility for its ongoing emissions. Its operations will be carbon neutral from 2021 and its own-brand products by 2025.
Furthermore, the company will be advocating with the government to press for necessary systemic change, including a call for greater climate impact disclosure and support for the most vulnerable.
Gary Dewin, people director at the Co-op, said: “We are clearly facing a monumental climate change crisis and must recognise that we have a part to play. We simply have to do more and quicker.
“By partnering with Make My Money Matter and committing to engage with our members and our pension funds, we’re providing our members and colleagues with another way to help combat the climate change crisis through sustainable investments.
Tony Burdon, chief executive at Make My Money Matter, said: “We believe that green pensions should be the new normal for any organisation committed to tackling the climate crisis, and that all new employees should be given a green option when starting a new job.
“With COP26 on the horizon, this is a crucial year for climate across the globe. With a growing demand from across society to ‘build back better’ from this pandemic and to build a net-zero world, the time for action is now.”
