Why? Because it’s the most impactful way we can influence climate change and create the world we want
FACT OF LIFE
Pounds work faster than placards.
Get this…our pensions account for half of all global investment. That’s how powerful they are. But have a peek behind your pension pot and you’ll most likely be horrified by what you find. Nine times out of ten, our pension savings are funding fossil fuels, tobacco and arms. We are effectively shareholders in social and climate breakdown…whilst we buy organic food, and get on our bikes…mmm!
Most of us don’t realise it. We’d want our money doing brilliant things, like funding innovation, non-destructive supply chains and human rights, right? Well, that’s exactly what we can do. Deciding where we want it to go is 27 times more impactful than any other climate action we take.
Two especial bits of good news:
1) The rise and rise of ESG funds - Environmental, Social and Governance funds invest in companies based on their sustainability and societal impact as well as their return and they are here to stay.
2) It’s the future. Corporations who don’t change their products and behaviours will become less and less investable, even running the risk of ‘stranded assets’ (eg. oil companies’ untapped fields becoming effectively worthless in the future, because no one is buying oil).
It’s a big incentive to change and fast. In fact so big, that even BlackRock, the world’s largest investor - with a historically huge fossil fuel portfolio - has warned that companies without a clear plan to net zero will “see their valuations suffer” as customers, shareholders, policymakers and employees lose confidence in the business. A little late to the party BlackRock if you don’t mind us saying so. But hurrah!
So what can I do?
Become an activist investor and demand a pension you can be proud of!
It’s easy.
The brilliant Make My Money Matter campaign has just been launched by all-round-amazing-good-egg Richard Curtis (creator of Comic Relief). Sign this national call for pensions we can all believe in.
Next, find out what your own pension pot(s) is funding to see if it’s aligned with what you stand for. Follow the steps here. It takes minutes (once you find your log in details!) to look up what your pension is currently invested in and then to review the fund options by your provider. Switching can be done at a click of a button.
Will it cost me?
This is one where we can’t be definitive or give financial advice. Choosing how you invest money is a very personal choice and there is no guarantee of financial performance of investments - i.e don’t blame us. Disclaimer over ;-). Pensions are a long game so consider the time frame from now until you expect to draw pension income. There is a strong case that sustainable, resilient, well-run companies are more likely to perform better in the long run. Harmful companies are riskier because they face a future of consumer boycott, financial penalties and government regulation. Simple smarts.
We…
Aimee: I have a People’s Pension pot through my employer - this is where my money was going - sub optimal. So I went into my online portal and switched it all to their Ethical Fund - weighted towards a robust ESG profile or an improving trend. It’s not perfect as they still invest in some companies that haven’t been great for the planet to date but they’re using their investment as leverage to drive change, so fingers crossed!
Sonia: For the first time in my life I’m actually thinking about investments. My Achilles heel! A friend said his conscious investment portfolio was giving him over a 90% return. Amazing. The world is changing! Whatever we have at our disposal, now is the time.
Have a comment? Please post it in the box below. Is there something you’re proud of, big or small (VAT petition signed, renewables switched)? Email us, so we can feature you on our Weekly Shout Out. Everyone loves it! And don’t forget to use the help desk if you have a question, request or something you’d like us to check.
“Money walks the talk”
Photo: Alex