On the go: The majority of savers (87 per cent) do not understand the importance of having their pension investments aligned with net-zero goals, according to new data from Legal & General Investment Management.
The research, which polled 3,056 individuals currently contributing to a workplace pension, also showed that 25 per cent of savers have never heard of the term net-zero, and a further 31 per cent have heard of it but could not say what it means.
However, despite the lack of awareness of the term, when members were explained its meaning most of them were in favour of their pension moving in this direction, LGIM stated.
Furthermore, 70 per cent of defined contribution members prefer remaining invested in non-complying companies and use their collective power to engage with these to align their businesses with global climate change efforts, or prepare them to thrive in a low-carbon economy, the asset manager added.
LGIM also noted that millennials were the stronger supporters of engagement, with 79 per cent supporting providers with stewardship activities.
Stuart Murphy, co-head of DC at LGIM, noted that the asset manager has always considered environmental, social and governance factors “to be a financially material consideration, and this research shows that our members agree, with the majority in favour of their pensions moving to net-zero”.
He said: “It is understandable that members are not fully up to date with the latest trends and terminology, and it is important that we work to further educate, support and empower our member base on the role and impact of their pension savings on society.
“A greater engagement on these matters can instigate a virtuous circle, whereby members’ increased contributions provide more firepower to LGIM’s stewardship efforts to create better outcomes for society as a whole.”
