More than two thirds of pension funds have a commitment to net zero alignment in place, according to new figures published by the Pensions and Lifetime Savings Association (PLSA).
According to the PLSA data, nine out of ten funds with a commitment in place are targeting being net zero compliant by 2050, with some aiming to be compliant earlier – one in seven by 2035 (14%) and one in five working towards 2035-2040 (18%).
However the study found that 27% of funds do not have a net zero commitment in place, of those one in ten (10%) anticipate having one in the next one to two years, whilst one in five (20%) say they will have one in place in two or more years.
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PLSA policy director Joe Dabrowski said: “We’ve tracked our members’ preparedness for net zero over a couple of years now and are really pleased to see their progress as data quality has improved.”
“The latest research indicates the window to limit global warming to 1.5C may be closing. This has grave consequences for society, pensions and savers.”
“It’s crucial that the government delivers on its green transition strategy and avoids creating any uncertainty with mixed messaging on its climate and sustainability objectives.”
However, some campaigners continue to call for more action on pension funds. MakeMyMoneyMatter have recently launched a campaign featuring Olivia Colman as an oil-guzzling CEO, after its research revealed that £88 billion worth of pension savers money is still invested in fossil fuels.