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Pensions and climate change – Protecting your future

If you’re in employment in the UK, you are likely to be paying at least 5% of your earnings into a pension. But do you know how your pension is invested?

Heavily invested in fossil fuels? Your pension could be feeling the heat

Climate change is set to wreak havoc on the world’s people and ecosystems. But it could also mean your pension is worth less when you come to claim it.

As we transition to a low carbon economy, fossil fuel assets could quickly become worthless, causing losses to your pension too.

Climate change: your pension is power

The people who invest your pensions savings have legal duties to make sure your money is protected from financial risks – so you don’t lose out.

If they haven’t thought about climate change as a financial risk, the law might be able to help.

Is your pension fund managing climate change risks?

We use the law to make sure climate change features in pensions decision-making.

Help our pensions team get the full picture: ask your scheme if your savings are at risk. We’ve written a letter you can send to your scheme.

If you have your scheme’s contact details you can email it straight to them. Otherwise, you can ask your employer to forward your questions on.

What next?

Make sure you let us know when you’ve sent the letter, and what your scheme says in response.

If their response reveals that your money may be exposed to climate-related losses, we can suggest some next steps.

Any questions?

Email our pensions team

ClientEarth’s Climate Finance initiative aims to accelerate a smooth transition to a low carbon economy by driving the integration of climate-related financial risk into investment decision-making. Our pensions team has written to the UK’s top pension schemes asking about climate risk, commissioned a ground-breaking QC opinion on the duties of pension trustees to consider climate change, reported on climate risk to the FCA, and referred the Local Government Pension Scheme to the Pensions Regulator on schemes’ failings to consider climate risk.

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