Climate Crisis Pensions – are you moving yours away from fossil fuels?

June 17, 2019

Green investments are starting to be more and more relevant with climate crisis becoming more of a reality. Enable’s IFAs’ in Bishop’s Stortford have seen more and more support, especially in pension schemes for moving people’s money from fossil fuels into renewables.

If you have a pension which is usually your long-term investment and wonder what your money is invested in, you may be interested to know that many pension schemes are already shifting portfolios towards renewables and away from fossil fuels. It is something to consider that during the last few years a number of pension schemes have taken action to protect their members from the risks associated with climate breakdown. They have largely done this by reducing their exposure to companies with reserves of coal, oil and gas in their portfolios.

To do something does not always mean you have to completely pull out of all carbon dependant companies. Some providers have chosen to apply more of a positive “tilt” in their pension portfolios, one that increases support for businesses identified as vital to combating the climate crisis. Investing more in companies working on renewable energy, while at the same time reducing investment in firms that are heavy carbon emitters, have fossil fuel reserves or are not making the sorts of changes needed to meet emission reduction targets.

Pensions minister, Guy Opperman says, pension schemes should be supported for moving people’s money out of fossil fuels and into renewables because the financial risks from the climate crisis are “too important to ignore”. The minister also believes more can be achieved: “Pension schemes can identify investment opportunities which will make market-beating returns for members. “They ought to be thinking about the assets which help drive new investment in important sectors of the economy: smaller and medium firms, housing, green energy projects and other infrastructure which deliver the sustainable employment, communities and environments which all of us wish to enjoy.”
Enable’s IFAs can help you look at greening your pension and other long-term investments.

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individually tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain.

Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.

< Back