Which companies offer a pension that is not heavily involved in deforestation or pollution?

03 November 2021

Question by Janine

Hello! I am trying to figure out which company offers a pension that is not heavily involved in deforestation or pollution.

I don't want to invest into companies such as Amazon, Unilever or Nestle for example as they are all heavily invested in deforestation and are amongst the heavy polluters...

So a fossil fuel plan is not good enough for me, if it still destroys our beautiful planet... Ain't a planet B!

Answered by Boring Money

Hi Janine,

Thank you for your question.

Ethical and sustainable investing has become more popular in recent years, and rightly so.

Most pension companies are implementing some form of ESG into their portfolios these days, with few actively seeking to invest in companies causing harm.

There are sustainable or ethical fund options with most pension providers. Even more choice when investing through a SIPP. However, your funds are invested with thousands of other investors and you'll be at the mercy of the fund managers. The fund managers will have a prospectus & fund objectives, so you may want to read these first to ensure they meet your objectives.

If you have specific areas you wish to avoid, there might be portfolios that meet your needs. Some research would be required here and unfortunately I cannot recommend specific companies without knowing your circumstances.

Discretionary fund managers can build a specific portfolio and go into more detail with your preferences of companies to include or avoid. You can also include or avoid certain sectors such as fossil fuels and deforestation. Whether you can use a discretionary manager will depend on your level of funds, as many have a minimum investment value of £250k.

I hope that helps.

Answered by

Boring Money