UK-based pensions provider Scottish Widows has found that 69% of employers offer an option for a responsibly invested company pension, but only 44% have it as their default option. According to the Responsibly Invested Pensions Report, 17% employee classed the environmental or social impact of their pension as a top priority, with this rising to 25% among those aged 18-34. Three-in-five employers reported an increase in employees seeking to understand how sustainability is embedded in their pensions during the past year. However, 61% of employees do not know how to get their employers to install responsible investment as the default option for their pensions according to Scottish Widows’ research. Key concerns include a lack of clarity around costs and benefits (25%), doubts about comparable returns (23%), and general uncertainty of funds labelled as ‘responsible’ (20%). More than half (53%) of employers have allocated pensions to specific sustainable funds, 46% said they were invested in impact strategies and 45% are focused on investing in companies that are cutting carbon emissions. “Transparency is key; workers want assurance that their pensions are future-proof, both for their retirement and the future world they will retire into,” said Eva Cairns, Head of Responsible Investment at Scottish Widows. “Meanwhile, employers must demonstrate how they have considered responsible investment in their workplace offering, especially their default that the majority of employees will be in.” The report surveyed 4,712 employees and self-employed workers, 2,000 human resources decision-makers and 189 UK-based financial advisers.
