Sustainable Investment for Savers

Jun 6, 2022 | ESG, Investments, Markets, Pensions, Savings

44% of savers said they would switch to sustainable investment if offered

As more people become aware of the impact their money can have on companies and supply chains, they’re increasingly interested in investing in companies that align with their values.

For many people, that means investing in companies that are working to address climate change. However, retirement funds are often invested in a variety of different companies, making it difficult for individuals to know where their money is going. As a result, many people feel in the dark about where their retirement pots are actually invested.

So what’s stopping them?

The transparency from employers and pension providers is lacking when it comes to investing schemes. With almost half of savers not being satisfied with how much information they’re given, very few think that their retirement funds have a positive impact on people in the world today–and this number goes down even more for millennials who want environmental responsibility too.

Among the biggest worries for investors are that their pensions may be funding oil & gas giants, weapons manufacturers, or companies with links to deforestation especially for UK pension schemes as the UK stock market is more heavily weighted towards these sectors than the US stock market, for example. All three of these industries have significant environmental and social impacts which investors seek to avoid.

Furthermore, UK DC pension schemes often have limited fund choices which often doesn’t include ESG funds. Transferring away from this scheme to a SIPP where appropriate for example would provide this option as SIPPs offer much greater investment choice than standard DC schemes.

UK savers want their money invested in ways which help tackle the climate crisis. But with limited information, limited choice, poor communication of options alongside other pressures, such as high living costs, it is proving difficult for people to make well-informed decisions about where to best place their savings.

The results from this survey show very clearly why we need a new approach if we’re going be successful tackling global warming effectively.

We can all make small changes in the way we do business that will have a large impact down the road. It is our hope that this report will inspire you to take the necessary steps towards creating a more sustainable future. Let us help you get started – we have the expertise and resources to do just that. With your support, we can all strive for a better world.

This communication is for informational purposes only based on our understanding of current legislation and practices which are subject to change and are not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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By scheduling an appointment with an adviser they will reach out to you at your requested time. 
Personal advice, whenever it suits you.

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