Greening your pension is 21 times more impactful in tackling climate change than going vegan, stopping flying and moving to a renewable energy provider, according to Make My Money Matter.
Research from Make My Money Matter, Aviva and Route2 reveals that making your pension green is the single most effective action an individual can take to reduce their carbon footprint.
A greener pension can save 19 tonnes of carbon per year – significantly more than the average UK carbon footprint of seven tonnes, the campaign argues, with greener pensions estimated to be 57 times more effective than adopting a vegan diet.
Green pensions could save those with a large pot of at least £100,000 64 tonnes of carbon – nine years’ worth of the UK citizen’s average carbon footprint.
Make My Money Matter has launched the 21x challenge, calling on UK savers to ensure their money helps tackle the climate crisis by asking their pension providers to go green and commit to net zero.
| Action | Pension Power |
| Driving an electric car | 20x |
| Switching to a renewable energy provider | 40x |
| Adopting a vegan diet | 57x |
| Giving up flying, becoming vegetarian and switching to a renewable energy provider combined | 21x |
Richard Curtis, co-founder of Make My Money Matter says:
“We have taken real collective steps in our society to become greener in our day-to-day lives. However, I helped create Make My Money Matter after being alerted to the fact that our pensions could be undoing all of our hard work without us even knowing. These findings confirm just how important our money is in the fight against climate change. In fact, our pensions are the most powerful weapon we have to help protect the planet.
“We need the entire UK pensions industry to go green – making their default funds more sustainable so all savers can have a pension to be proud of. As individuals, we have a critical role to play in driving this change by showing providers that we want our money invested in a way that does good, not harm and, so that we can retire into a world that isn’t on fire.
“That’s why we are calling on all UK savers to take the 21x challenge and ask their provider to go green in 2021, meaning that their scheme is committed to urgent carbon reduction targets, halving emissions this decade, and actively investing in solutions that help save our planet.”
Aviva managing director, UK savings & retirement Rob Barker says: “Pension savings have incredible potential for contributing towards climate goals. With over five million pension customers, and as the first major UK financial services company with a plan to meet Net Zero by 2040, we take our responsibility very seriously – which is why we commissioned this research. We’re excited to be working with Make My Money Matter to ensure people have a better understanding of how their pension can be used to create a better future.
“We recognise that many consumers now expect some level of sustainability to be built into whatever they buy. That’s why the investment and pension assets controlled by us are included in our 2040 sustainability ambition – the most demanding target of any major insurance company in the world today.”
Nick Robins, professor in practice – sustainable finance at the London School of Economics says: “This is a very powerful piece of analysis, credibly showing how carbon emissions linked to the consumption of a financial service such as a pension can be compared with other parts of a person’s lifestyle, such as diet, housing and transport.
“Shifting investment is an important way of sending signals to companies to accelerate action to support the net-zero transition. Shareholder engagement is another strategy, and the use of this tool can act to draw out how individual savers ensure that their pensions provide a lever for climate action. The study points to the need for individuals to build up their capacity to make informed climate choices over all aspects their lifestyle, not least finance.”
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