If you’re thinking about how your own life impacts the climate crisis or, indeed, how the climate crisis will impact you, your finances should be one of the first places you look and, in particular, at your pension.
Whilst your pension might seem like a mysterious and elusive pot of money, it is possibly your greatest contribution to the financial system. Understanding how it contributes to the climate crisis and demanding it is part of the solution is one of the single most impactful things you can do, both for the planet and for yourself.
That is why we have launched a new initiative today which will help you connect with your pension provider and challenge them over their legal duties on climate change.
What is the pension problem?
Your pension is money you are earning right now set aside and invested in financial markets to secure savings which will support you in the future. Unfortunately, a proportion of these investments continue to be channelled into industries which are fuelling the climate crisis we see around us. The climate crisis is not only severely damaging our planet but also means your pension may be worth less when you come to need it. Climate change is no longer simply considered a social responsibility issue but a core financial risk with the potential to impact business, the economy and the markets in which your pension is invested.
To help understand the scale of pension power, in 2019 UK pensions alone were invested in assets worth approximately £3.0 trillion which makes it the second largest pensions market in the world. Pension providers can use their strength and position to intensify the response of the investment industry to climate change and ensure it is prepared for our future.
What is ClientEarth doing to help?
Currently your pension power probably feels inaccessible and confusing. You are not alone – people across the UK will have the same concerns as you. That’s why at ClientEarth we are launching an initiative to help savers connect with their pension scheme, challenge them over their legal duties on climate change and, in doing so, help look after your savings and the planet.
What can you do to get involved?
The people who provide your pension act on your behalf and their actions have a direct impact on the security of your savings, the fabric of our economy and the health of our planet.
Join us and challenge your pension provider to live up to their legal duties when it comes to climate change.
As we rebuild following the pandemic there’s an opportunity now more than ever for pension providers to capitalise on the investment opportunities presented by the transition to a low carbon economy. We, like you, want a more resilient world which supports our shared health, communities and environment. Find out more on our pensions work here.