Powering up our investment strategy with renewable energy

Your views matter to us. So when we found out that 88% of our members ranked clean energy as personally important to them, and 89% stated tackling climate change was a priority, we wanted to show you how we’re investing more of your money in green energy.

In the last 20 years, renewable energy use has increased nearly tenfold and now makes up around 40% of total UK electricity generation. We believe this booming sector will continue to grow as countries look to become less dependent on oil and gas. As a result, it’s likely to make money for your pot while helping limit climate change.

We’re able to invest your money in opportunities that only the largest investors have access to. It’s a significant advantage thanks to our scale as the UK’s largest workplace pension provider. Over the last couple of years, we’ve been steadily putting more of your money into the renewable energy sector.

One of our biggest advances in this area was a ground-breaking partnership with Octopus Renewables, the largest investor in solar power in Europe. We’ve joined with them to invest billions of pounds into green infrastructure over the coming decades, like solar or wind farms.

It’s a big step to reducing your pension pot’s carbon footprint and means we’re closer to achieving net zero carbon emissions. More importantly, we think it’s an opportunity that will pay out for your pot both now and in the future.

We’ve also been working to protect your savings from companies who aren’t looking towards a more sustainable future. It’s likely that heavy polluters, like oil and gas companies, will be held increasingly accountable by the public, by government, and by the press if they fail to manage climate change risks.

We scrutinise the companies your money is invested in, checking their policies and actions on sustainability and environmental impact. What’s more, we push them to change so they can continue to thrive in world that’s not reliant on greenhouse gas emissions, which is often described as a low-carbon economy. Adapting to a low-carbon economy should help these companies continue to make money for our members. If we’re not satisfied with their response, we’ll consider pulling your money out.

It’s more than just lip service. We recently sold all our shares in ExxonMobil amongst others, because they hadn’t done enough to convince us they were limiting their contribution to global warming.

After all, we’re investing your money for the future and helping shape a future worth living in.

Published 15 July 2022