More than £ 300 billion of UK pension money has been invested in companies and financial institutions at high risk of deforestation, according to a study published today.
A study by Make My Money Matter (MMMM), a research consultancy with Systemiq and the NGO Global Canopy, found that for an average contributor with a fixed contribution in the UK, £ 2 out of every £ 10 saved is invested at the highest level in the enterprise. the risk of deforestation worldwide.
Director and screenwriter Richard Curtis, co-founder of MMMM, which advocates a zero-pension sector, said the report stressed that the scale of pension investment is damaging the environment and exacerbating climate change, and largely without saving knowledge.
“There’s an old saying, ‘When a tree falls in the woods and no one hears, does it really sound?'” He said. “Suddenly this old saying has become one of the most important issues in the world. Because although we don’t see forests falling and we don’t hear trees crashing, we are all involved in deforestation. We are connected as consumers, as citizens, and as “This report strongly emphasizes, as do pension holders, because it is our money that is managed through our pensions – it is invested in companies that stimulate deforestation, harm the environment and threaten life and livelihoods around the planet.”
Previous research by the Ethics Pensions Company has shown that deforestation is a major concern for investors when it comes to their pension investments, but recent findings suggest that pension owners may unknowingly invest more than £ 6,500 in companies that negatively affect the planet.
Overall, according to the study, almost a third – 31 per cent – of investments in UK public funds of pension funds and in corporate bonds fall on companies and financial institutions at high risk of deforestation.
Global Canopy CEO Nicki Mardas said the study found that “pension funds are too easy to turn a blind eye to the risks of deforestation hidden in the investments they make on our behalf.”
Meanwhile, Ekaterina Stadulka, a partner of Systemiq and program director of Blended Finance Taskforce, stressed that changes in the pension sector are “critical to combating deforestation.”
“It has powerful tools for understanding the financial risks associated with climate and nature, and is working together to set ambitious zero goals,” she said. “Achieving these targets depends on the fact that the portfolios will be without deforestation. Without this, there is no net zero.”
Originally a version of this story appeared Occupational pensions.
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