Calculate your pension's carbon emissions.
Understand the hidden carbon impact of your pension.
For many organisations, pension investments are one of the largest sources of emissions - yet they’re often overlooked. This tool helps you estimate your pension’s carbon footprint and understand what it means in practice.
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Pensions have a huge impact per pound invested, which accrues year on year
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Not all pensions are equal, and while ESG labels often correlate with lower overall emissions, there is still a significant difference
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Of our sample, Scottish Widows’ Pensions Portfolio Four (Series 2) performed best in terms of full scope emissions, and the People’s Pension Global Investments Funds performed worst, with 66% more emissions per pound invested.
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Considering pensions-related emissions in your organisation’s Net Zero plan is critical – for many organisations it can be a substantial part of your overall impact.
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If you want to read more about our research and methodology, visit the downloads section below.
The problem with pensions
There is between £2.5 and £3 trillion held in UK pension schemes (ONS, 2022), invested on behalf of millions of people to grow their future savings. However, many of these investments may conflict with our environmental and social values. Research by Mercer (2022) found that only 38% of defined contribution schemes include an ESG fund in their default strategy, and even “sustainable” options are not always transparent or as ethical as they claim.
One of the most important measurable aspects of an investment today is its carbon impact, yet pension holders are given little visibility into the carbon footprint of their funds. Aside from a high-level 2021 study by Make My Money Matter in partnership with Aviva, there has been no clear way to compare the climate impact of individual pension options.
That’s why we’ve created this calculator — to help individuals and SMEs understand the carbon impact of their pensions and make more informed, climate-conscious choices.
Why is it important and what can I do?
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Pensions are one of our most impactful activities as individuals and as businesses.
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Employees want pensions aligned to their values and with limited emissions [Aviva, 2022].
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Assess your options with your provider or broker to move your default pension scheme to a lower emitting pension – or encourage or educate your employees if your employer’s scheme requires employees to switch within the plan (e.g. Nest).
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ZeroBees can help you better understand the carbon footprint of your pensions, banks, organisational and value chain emissions.
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We can support your organisation through a comprehensive organisational carbon assessment (including pensions and banking exposures) and get you on the road to Net Zero.
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Book a call today with one of our carbon experts
FAQs
