Smart Pension Sets Net-Zero Target for Default Fund by 2040

Published on:
by KnowESG
D5jMHnhW4AENToo

Smart Pension, an online pension provider, has announced its goal to transition its default fund to "net-zero" by 2040 by increasing its investments in companies working to increase energy efficiency, accelerate the transition from fossil fuels, and create a more circular economy.

The online pension service announced the new objective and revealed a plan to halve its emissions by 2025 yesterday.

Smart Pension, whose assets grew by 2,000% in December and totalled £2.2 billion, reported that it was now "far ahead" of reaching its Paris Agreement commitments.

Head of investment proposition James Lawrence explained: "We're always reviewing our investments and looking to the future at how we can commit even more to innovative sustainable funds that benefit society and the environment, whilst also providing strong outcomes for our members."

Smart Pension indicated it would seek to invest in more companies "innovating for good" in the future, including those aiming to increase energy efficiency, develop sustainable agriculture, shift away from fossil fuels, and recycle materials.

Members of the default fund will now have a broader selection of investments based on the amount of environmental responsibility they deem most appropriate for their funds.

"We know that our members are increasingly looking at what their pension savings are doing as they accumulate," said managing director Paul Bucksey.

"Although sustainable investments can be more expensive than more traditional investments, a key advantage of having a very clean and efficient platform is that we can keep our admin costs low, allowing us to spend more on higher-quality, ESG-friendly investments without increasing member charges."

Source: Business Green

For more sustainable finance news

Share:
esg
esg
esg
esg

Sustainable Finance Headlines

Ireland’s ISIF Puts €160M Toward Climate Solutions

Ireland’s ISIF Puts €160M Toward Climate Solutions

Sustainable Investment Boost: Ara Partners’ $800M Fund Tackles Industrial Emissions

Sustainable Investment Boost: Ara Partners’ $800M Fund Tackles Industrial Emissions

Bosqar Eyes €150M in Sustainability Bonds Amid ESG Push

Pioneer Secures $1.2 Billion for Sustainable Infrastructure Push

UK's RLAM Adopts SDR Focus Label for 8 Funds for ESG Transparency

Sri Lankan Stock Exchange Launches GSS+ Bonds Regulatory Framework

UBS ETFs Embrace ESG Principles in Major Rebranding Effort

Sustainability at the Core: Thailand and Luxembourg Strengthen Financial Cooperation

NYS Pension Commits Extra $2.4B for Sustainable Investments

Greece's Western Region to Get $6.4B for Green Energy Shift