On the go: PensionBee will offer Legal & General’s first fossil fuel-free fund, in response to demand from consumers to exclude oil from their pension investments.
The new fund, which will launch later this year, follows a survey of PensionBee clients, which found that 34 per cent of respondents who are already invested in an environmental, social and governance fund believe the time for engagement with oil companies is over.
These individuals want to completely exclude oil from their pensions, even if that means a potential reduction in the profitability of their pension, although many are convinced oil production is a dying and long-term unprofitable business, the pensions consolidator stated.
In November, Romi Savova, chief executive of PensionBee, wrote to L&G questioning the ongoing inclusion of Shell in their climate-conscious Future World fund – which is offered to the consolidator’s 65,000 clients.
According to The Guardian, L&G Investment Management stated at the time the need to “balance” environmental and financial concerns when putting together the investment portfolio.
“The fund has already significantly reduced exposure to hundreds of carbon-intensive stocks. Further exclusions might have unintended financial impacts. For example, Shell is one of the largest payers of dividends in the UK,” LGIM said.
While PensionBee continues to advocate for the ‘engagement with consequences’ approach of the Future World fund, it is clear there is increasingly strong demand for pension products that give customers the choice to divest from oil, it noted.
According to Clare Reilly, head of corporate development at PensionBee, everyone should have control over where their money is invested.
“Our new fossil fuel-free fund will finally offer consumers a practical way to completely exclude oil from their investments. We hope this is just the start of all savers using their investments to transform the world they live in – for the better of the planet, society and their retirement.”
