Pensions are powerful. They can do great things – like investing in renewable energy, helping fund affordable housing and fighting climate change – as well as helping you save for your future.
Why we are making changes
Our focus has always been – and will continue to be – on providing strong investment returns so that you have as much money as possible when you retire. There will always be some short-term ups and downs to be expected as markets and economic conditions change over time.
However, we also want you to be able to retire into a world that is fit to live in, so we want to invest in a sustainable way. This means doing good for both people and the planet.
What this means
We are making changes to the ‘Smart Growth – Moderate Risk Fund’ to make it even more sustainable. Your pension savings are automatically invested in this fund as part of our default investment strategy unless you have made your own choice.
More of your pension savings will be invested in:
Fighting climate change – supporting companies who are actively moving away from fossil fuels
Renewable energy – providing clean energy and being less reliant on fossil fuel
Affordable housing – providing opportunities for low-income families
Biodiversity – giving natural habitats a chance to thrive
Health and education – improving the quality of education and healthcare
What we are changing
To make all of these things possible, we are making the following changes to the Smart Growth – Moderate Risk Fund:
We’re introducing a new allocation to global climate equities, which encourages companies to transition to a carbon-neutral economy (“net zero”).
We’re also introducing specific funds which invest for a positive impact on the environment and people. They will focus on helping to improve biodiversity and other areas such as affordable housing and renewable energy.
And, finally, we are introducing a global green bond allocation, providing financing for companies’ specific climate and environmental projects.
Frequently asked questions
Do I need to do anything?
You do not need to take any action as these changes will take place automatically. If you would like to review your investment options, sign in to your Smart Pension account.
Are there any costs for these changes?
There are no explicit costs to you for these changes being made. There may be small costs incurred within the fund itself where these are unavoidable.
Will there be more sustainable investment options?
We recognise the importance of investing sustainably for strong investment returns and to make a difference to people and the planet. We will continue to review the investment options available and look to provide more sustainable investment options over this year.
What does net zero mean?
Net zero is when the amount of greenhouse gases produced and the amount removed from the atmosphere is equal. This will help limit global warming.