Analysis by the Ethical Pensions Campaign estimates that, based on market averages, around 24 million tonnes of carbon could be released into the atmosphere annually due to the substantial size of the schemes’ investments. The schemes collectively have around £200bn in assets under management and represent some of the UK’s biggest companies such as Boots, Ford, Shell and Vodafone.
Many of these programs that have not yet set net zero goals are sponsored by leading companies that have set net zero goals. Boots and Vodafone have set targets to achieve net zero by 2040, while Ford has set targets to achieve net zero by 2050.
However, since each of these companies has a program that is not aligned with their net zero ambitions, MMMM called on them to take immediate action, saying failure to do so “risks undermining collective efforts. of the pension industry” to fight climate change.
Huw Davies, MMMM’s senior financial adviser, said: “We want all pension schemes to set credible climate targets, especially the larger schemes which have not yet made commitments and which collectively represent a proportion important part of British savers’ money.
“Recent ambitious climate commitments from Royal Mail, Co-op and Marks and Spencer pension schemes show that this is possible. Other schemes must follow, and corporate sponsors should support their schemes for climate action. doing so is a very long-term risk, our pensions are there to provide for that.”
Co-founder Richard Curtis added: “Leading companies are taking urgent action on sustainability, but it turns out that many are missing a huge thing, their pensions. Now is the time for all companies to integrate their pension into their sustainability plans at the same time, as pension funds are urged to recognize the urgency of the moment and define robust net zero strategies themselves.”
“We hope this report will help raise awareness among business leaders and those in the pensions industry about the extraordinary power of our money. In doing so, they can ensure that our pensions help fight the climate crisis, and not to fuel the fire.”
Programs identified by MMMM as not having set net zero targets:
- BMW Operations Pension Plan
- Boots Pension Plan
- BP pension fund
- British Airways Pension Schemes (Airways Pension Scheme and New Airways Pension Scheme)
- British Coal Staff Pension Scheme
- British Steel (Tata Steel) Pension Scheme
- Centrica Pension Plans
- Diageo Pension Plan
- Ford Employee; Contributory pension funds and senior executives paid by the hour
- IBM Pension Plan
- Pension fund HERE
- Lothian Pension Fund
- Miners pension scheme
- Northern Ireland Local Government Employees Retirement Committee
- Prudential staff pension plan Defined benefit section
- RWE Group Pension Scheme
- Santander Group Pension Scheme
- Shell Contributory Pension Fund
- Vodafone Group Pension Scheme
- Zurich Financial Services UK Pension Scheme