New Climate Impact Initiative calls on pensions industry to join forces to ensure climate friendly investments availability for all
Hymans Robertson is supporting and driving a new action group, The Climate Impact Initiative, which aims to encourage providers to make climate friendly impact investment options available for all savers regardless of plan size.
The newly formed Initiative is seeking the support of pension plans, with no cost or contractual commitment, to help grow the voice of asset owners to compel providers to address the needs of defined contribution pension savers.
The current list of supporters for the action group include Make My Money Matter, Pensions For Purpose, the Impact Investing Institute and the Trustee of the Reach Pension Plan, alongside Hymans Robertson.
In its role with the Climate Impact Initiative the leading pensions and financial services consultancy is now asking pension plan trustees and governance committees to register their support for the campaign to help make these positive, forward-thinking options available to their members by signing up on their website.
Commenting on the importance of working collectively across the pensions market, Callum Stewart, Senior Investment Consultant, says: “Research shows that up to four million pension savers are in plans with no clear access to climate friendly options, yet we know this is something that an increasing number of savers want from their pension funds. While we recognise that a number of providers have made great strides in this by making these options available and many have plans to, there is so much more that the industry could be doing to help individual savers have more of an impact to address climate change relative to existing funds. We believe that working as a united industry, with one voice, can create real change and together we can encourage providers to make climate options available to all members and make a difference.
“We are seeking support from trustees and governance committees to join our Action Group and provide their support to this important area. Together, we can compel providers to address the needs of savers, especially those members wanting to take more action to address climate change.”
Paul Rhodes, Member-Nominated Trustee for the Reach Pension Plan, says: “I have found through researching a climate impact option for members of the Reach Pension Plan that small and medium-sized schemes could face high costs and a governance burden to create something on their own.
“By working together with trustees and governance committees of other pension plans, I would hope we can compel providers to create a climate impact investment for us all that would offer our members value for money and increased engagement to help produce better retirement outcomes.”
David Hayman, Campaign Director at Make My Money Matter, says: “We know that savers across the UK want to make their money matter. It’s critical that all pension providers respond to this call and offer cleaner, greener pensions to their members.
“We believe that this initiative will help raise awareness of the power of our pensions and provide consumers with more voice and choice over where their money goes.
“This is an important step to ultimately ensuring that all pensions are climate friendly; building a healthy planet as well as securing healthy returns.”
Karen Shackleton, Director of Pensions for Purpose, says: “Pensions for Purpose is pleased to support this initiative that will help savers across the UK access a climate impact option in their pension funds.”
Sarah Gordon, Chief Executive of the Impact Investing Institute, says: "The Impact Investing Institute is happy to support this initiative that seeks to provide a climate friendly impact investing option for Britain's pension savers."