ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, with the launching of a new carbon emissions template for pension schemes, and a new study highlighting savers’ demand for green pensions.
New template standardises emissions data
The Pensions and Lifetime Savings Association, the Association of British Insurers, and the Investment Association have launched a new template aimed at helping pension schemes calculate their carbon emissions, and better understand the environmental impact of their investments. The carbon emissions template is intended to help pension funds meet new requirements, including obligations under the Climate Change Governance and Reporting Regulations and related Department for Work and Pensions statutory guidance. It is also aimed at supporting insurers and asset managers in meeting their obligations under the Financial Conduct Authority’s new ESG sourcebook.
More than half of savers want green pensions
Some 21m pension savers would select a green pension if offered one by their provider, according to new research by Make My Money Matter. Awareness of the link between climate change and pensions has leapt by 85 per cent, according to the study, which was conducted alongside polling company Censushouse. More than 6m savers are planning to switch to a sustainable pension over the next year, while around a third now want their pensions to be invested in solutions to climate change. However, £1.7 tn of pension money is still in schemes that have failed to set “robust” net zero targets that sit in line with the Paris Climate Agreement. Last year, the Make My Money Matter campaign found that 71 per cent of the UK’s largest pension schemes do not have credible plans for reaching net zero. This represents more than £2tn of the UK’s pensions market.
