Estimated 18 million UK pensioners want schemes to reduce carbon emissions

Research has found an estimated 18 million pension holders in the UK want their pension funds to be invested in projects that reduce carbon emissions.

Make My Money Matter, a finance campaign co-founded by filmmaker Richard Curtis, discovered less than half of pension holders are aware the money is invested in global companies.

Over 40 pension schemes, representing £1 trillion in assets under management, have made net zero commitments and the campaign, alongside Tulipshare an ethical investing platform, is now calling on them to back these up.

Make My Money Matter says the pensions industry should ensure fund managers vote in line with members’ values on key resolutions this Annual General Meeting season, including those at ExxonMobil, JP Morgan and Amazon.

Richard Curtis, Co-Founder at Make My Money Matter, said: ‘Everyone knows about the power of the ballot box – but our democratic muscle doesn’t stop there. There’s £2.7 trillion in UK pensions – and that money belongs to us. By telling those managing our money that we expect them to be noisy custodians of the planet that we will retire into, we can open the boardroom to millions of new voices for change and make our money matter. 

‘This AGM season, it’s time to activate the power of our pensions. Our money funds huge and powerful companies – so let’s put it to work, changing their policies and changing the world.’

40% of savers surveyed knew their pension scheme could influence how businesses they invest in behave by engaging with asset managers.

28% said they would contribute more to their pension if they knew climate positive voting policies were in place and the company was engaging with fund managers to encourage action on the climate crisis.

Additionally, a quarter of pension holders said they would switch schemes if they discovered no climate friendly voting policies were in place.

However, it’s not just the climate savers are concerned about, as initiatives such as improving workers’ rights, curbing excessive pay for senior staff like CEO’s and encouraging diversity were also high scorers.

Antoine Argouges, Founder and CEO at Tulipshare, said: ‘This year, climate resolutions top an unprecedented number of shareholder proposals – institutions and retail shareholders alike should be aware of the power of their vote in the upcoming proxy seasons. I truly believe once people understand the power their money has, shareholders can change the world.’

Photo by Huy Phan