What are ethical (ESG) pensions?
22 Jan 2024
The Impact of Your Pension on ESG
Ever paused to think about the ecological footprint of your pension? It might surprise you to learn that the funds from your pension could be contributing to carbon emissions, and thereby affecting the environment. Astonishingly, an average person’s pension possesses a carbon print much larger—26 tonnes—compared to the emissions they directly produce annually.
Understanding ESG Investing
ESG stands for Environmental, Social, and Governance. This approach to investing considers not only the financial outcome but also the impact on society and the environment. If issues like fair worker wages, corporate diversity, or environmental conservation are important to you, ESG investing allows you to support these ideals. By choosing ESG investments, you're prioritising socially responsible growth, ensuring your financial planning benefits more than just your finances.
The Rise of ESG Investing
With a growing global consciousness about environmental issues and social equity, ESG investing has surged in popularity. Millennials, in particular, are driving this trend; they care deeply about corporate responsibility and sustainability. Indeed, recent discoveries, such as the significant emissions contributed by a small group of companies, have spotlighted the importance of responsible investing.
The Power of Pensions in ESG
Pensions are about planning for the future, and one way of attempting to safeguard that future is by helping it be sustainable. By channeling pension funds into socially responsible investments, you wield considerable influence over corporate behaviours, pushing for more sustainable practices. These actions not only promote a healthier planet but can also decrease your carbon footprint significantly!
How Penny Can Help
At Penny, we understand the importance of having a pension that aligns with your values. If you’re unsure where your previous workplace pensions are invested, or how they are invested, Penny can assist you in finding and consolidating them into a single Penny Pension, and then allowing you to prioritise ESG principles. By opting for our ESG fund, you can contribute positively to global sustainability efforts, right from your pension.
