Less than half (45 per cent) of UK CEOs and business leaders are aware that their company pension scheme could be contributing to climate change, according to research from Make My Money Matter (MMMM).

Earlier analysis by the campaign group and sustainability research house Route 2 showed that the investments of UK pension schemes allow an estimated 330 million tonnes of carbon to enter the atmosphere every year – more than the UK’s entire national carbon output.

This lack of awareness among CEOs and business leaders is also reflected in the sustainability plans of FTSE 100 companies, as further research from MMMM found that only eight mentioned their company pensions in their public sustainability strategies, despite the investments of their scheme potentially being one of their most significant climate impacts.

The “failure” of businesses to recognise the climate impact of corporate pensions represents a significant omission for business leaders, according to MMMM.

This action is also at odds with a growing trend to set wider climate targets for overall corporate activity, and many risk contradicting their wider sustainability goals and further driving the climate crisis.

Earlier research, conducted by MMMM, Route2 and Aviva, highlighted that 'greening' your pension is 21 times more powerful at cutting your carbon than giving up meat, stopping flying and switching to a renewable energy provider combined.

The research found that 44 per cent of CEOs planned to explore a more sustainable company pension in the next 12 months.

MMMM co-founder, Richard Curtis, commented: “Businesses have rallied to become more sustainable over recent years, however, many are failing to use one of the most powerful tools at their disposal – their company pensions.

“With £20bn invested each year through these company schemes, the potential of this money is extraordinary.

“Make My Money Matter wants all businesses to harness the hidden superpower of their pensions and align their company schemes with their corporate sustainability plans.

“That way, they can put their money where their mouths are on sustainability, while ensuring their pensions are building a world their employees actually want to retire in.”

MMMM partnerships manager, Jacinta Dillon, added: “Even the most glittering sustainability strategies can be undermined if the investments of company pension schemes continue to pump money back into the very system driving the climate crisis.

“Greening a workplace pension scheme is one of the most impactful steps a business can take, both for the good of the planet, and to reflect the views of their employees who want their money building a better world.

“Our research shows that the business sector has a big sustainability blind spot - their pensions. While some may be working with their pension scheme behind the scenes to invest more sustainably, Make My Money Matter wants businesses to put this action at the heart of their sustainability strategies.

“That way, they can make sure that all their hard work on sustainability isn’t being undone, as well as mounting further pressure on the pension industry to change.”

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