Providers to engage with members on ESG under ‘green nudge’ trial

Developed as part of the government’s COP26 agenda, the Department for Work and Pensions is launching a 'green nudge' trial with the three providers, aiming to reach more than 160,000 pension scheme members.

Created in partnership with the Behavioural Insights Team, the goal is to test the impact of behavioural nudges and messages in increasing saver engagement on sustainable pension investments, and how this could translate into greener pension decision-making, the DWP said.

The trial will last for three weeks and its results will be published later in the year.

Minister for pensions and financial inclusion Guy Opperman said: “Through the productive long-term investment power of pensions, we can help the UK get to net zero and deliver both investment returns and a sustainable planet.

“These trials will give us vital insight into how interventions can boost saver engagement and encourage greener choices. I look forward to seeing the results.”

Aviva’s director of workplace savings and retirement Emma Douglas noted the project focuses on two incredibly important issues for the provider.

“Increasing engagement with pension saving is a top priority for our clients and for Aviva, and this trial will consider whether customer messaging around climate change can prompt people to engage more.

“Of equal importance is educating savers about the role their pension scheme investments can have in achieving net zero ambitions, and this trial will do that too. It is a real win-win opportunity for providers, consumers and ultimately, climate change.”

For Hargreaves Lansdown’s senior analyst Nathan Long, the trial “comes at a time when increasing numbers of people are looking to use their investments and pensions for good but need more help to do so”.

“We're also interested to see to what extent the low levels of understanding of how pensions are invested acts as a barrier," he added.