Aegon AE pension default funds to be net zero by 2050

Aegon UK has committed to achieving net zero carbon emissions across its auto-enrolment (AE) default pension funds by 2050, as customer research reveals that 45 per cent of savers support calls for investing in a net zero carbon future to be made mandatory.

The survey, which was conducted amongst Aegon's customer panel, also found that 77 per cent agreed that climate change is an important risk to consider when investing for the future.

Aegon stressed that there is an “urgent need to take action” against climate change, confirming plans to explore the practicability of halving the emissions associated with default funds 2030 in light of this.

Commenting on the plans, Aegon investment solutions managing director, Tim Orton, stated: “As investment providers and a responsible business, we have a large part to play in the fight against climate change.

“We believe that this is not just an environmental issue, but one that is central to the future financial wellbeing of our customers.

“Investors are giving us a very clear message that they want to see action. Aegon and other providers have the power to influence the companies that they invest in and the third-party fund managers who provide investments.

“Businesses that fail to change, will fail.”

The commitment also follows the recent news that BlackRock will be taking an increased focus on environmental, social and governance (ESG) strategies in its UK defined contribution default strategy, LifePath, which is the principal default for the Aegon Master Trust.

Aegon highlighted these plans as "another positive step forward" for default investors, noting that more than half of total LifePath assets, around £3bn, are expected be invested in ESG strategies by mid-2021.

In addition to this, the group emphasised that the commitment to be carbon neutral is being addressed from a corporate perspective, as well as investment, with Aegon’s main operations having achieved carbon neutral status since 2016.

    Share Story:

Recent Stories


Responsible investing
Laura Blows speaks to Standard Life head of investment solutions, Gareth Trainor, about the latest responsible investment trends and developments for providers, pension schemes and their members

ESG and member engagement
Laura Blows speaks to Legal &General Investment Management head of DC, Emma Douglas, and Nest Insight Director of Research and Innovation, Jo Phillips, about member attitudes towards ESG and how this may impact upon pension fund investments

Sovereign bonds and climate change considerations
In Pensions Age's latest podcast, Laura Blows is joined by Hilary Norris, Product Manager, Sustainable Investment, EMEA, FTSE Russell, to discuss sovereign bonds and climate change considerations

Climate Investing
Laura Blows speaks to Aled Jones, Head of Sustainable Investing for Europe at FTSE Russell, and Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board, about the role of climate investing within a pension fund portfolio.

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

Advertisement