PensionBee, a leader in the consumer retirement market, has launched its new Climate Plan that sets a clear standard for climate-focused pensions.
This plan not only excludes fossil fuel producers but also commits to continually reducing the total intensity of greenhouse gas (GHG) emissions produced by companies in the plan by 10% annually. So, even if the global economy uses more carbon over time, the Climate Plan will move in the opposite direction, always using less.
Building on the success of PensionBee’s approach to sustainable investing, the Climate Plan will also increase the scope of exclusionary screens based on changing customer expectations, as learnt through recent surveying. The new Climate Plan will screen out unsustainable palm oil use, weapons, gambling, alcohol, tobacco, for-profit prisons and companies embroiled in environmental controversies.
Driven by insights from PensionBee customers, the Climate Plan offers the chance for customers to align their pensions with the 1.5°C goals of the Paris Agreement, directly addressing customer demand for sustainable, impactful pension options. The new plan goes further than the EU’s 7% year-on-year minimum carbon intensity reduction for Paris-aligned Benchmarks, aiming to reduce by at least 10%.
With a strong focus on green revenues, the new plan seeks to invest in companies that will benefit from the transition to a low-carbon economy, offering pension holders a pathway to sustainable financial growth while supporting climate action.
Customer input was instrumental in the Climate Plan’s creation.
In February 2024, PensionBee invited customers with sustainable investing preferences to share their views. The results showed 62% support reducing carbon exposure in their portfolios, and 98% back adding new exclusions like unsustainable palm oil, gambling, weapons, and environmental controversies.
Clare Reilly, Chief Engagement Officer at PensionBee, said: “All our investment solutions are designed for our customers, who play a crucial role in shaping our plan range. The Climate Plan continues our growing history of customer-led product innovation. The environmental challenges we face as a planet are fast moving, as are the solutions to address them.
“We remain committed to evolving and advancing our sustainable plan range, to respond to the changing expectations of customers and to reflect the newest approaches to climate-focused pension saving.
“By directly responding to customer sentiment, we are proud to deliver a pension plan that prioritises impactful climate action and meets today’s environmental challenges head-on.”
The Climate Plan’s annual management fee is 0.75%, ensuring accessible, climate-focused pensions for all.