Scottish Widows have released their first Green Pensions Report, which “uncovers the changing priorities of employees and employers when it comes to future finances”. A total of 2,000 UK adults aged 18 and over, who are working, self-employed or looking for work and 750 HR DMs were surveyed in August 2022, for both the employer and employee survey.
The research reveals that eight out of ten employees (83%) view climate change as an important issue, with a huge 34% believing it is the most critical issue affecting society today. It is no surprise therefore that the report suggests that green pensions are an attractive proposition for jobseekers and one of the top four things that employees look for in a new employer - behind only flexible working policies (48%), support with the increasing cost-of-living (39%), and an attractive holiday package (34%).
However, despite 72% of employees placing importance on their employer investing their pension sustainably, only 25% of those with pensions have checked where it is invested in the last year.
Additionally, despite 95% of HR decision-makers stating climate change is a very important issue, only 25% of employers claim to be knowledgeable about green pensions and 17% claim they don’t know anything about them. This is possibly why only 51% in the UK currently offer sustainable options on their employees’ pensions and the pension investments of major FTSE100 companies finance seven times more carbon than their UK company emissions.
Furthermore, the survey has also revealed the abilities between workers on differing incomes to pursue sustainability goals. Higher earners (those with an income of £100k or more) are better positioned and more committed to combatting climate change but this is possibly because those in the higher earning bracket receive better education on how to access more sustainable pension options. Additionally, employers in some sectors perceive that there is a lack of appetite for green pensions from their current and prospective employees.
The conclusion of the survey which can be found here is that there is an immediate need to raise awareness around green pensions and encourage wider understanding and access for all.
