Majority of UK employers offer a responsibly invested company pension

A new survey shows that while two-thirds (69%) of employers do offer a responsibly invested company pension, less than half have it as their default option.

This means that it’s up to an employee to take it upon themselves if they want to switch, but 61% of workers admitted to having no idea how they’d go about this.

This is according to Scottish Widow’s latest Responsibly Invested Pensions report, which highlights a growing trend in employees becoming more aware and interested in how Environmental, Social and Governance (ESG) ‘friendly’ their company pension scheme is.

Eva Cairns, Head of Responsible Investment, Scottish Widows, commented, “Providing workers with the opportunity to save for their retirement in a way that delivers financial and societal value in the long-term can only be viewed as positive, and we have an important role to play in educating savers about responsibly invested pensions.

“Employers and advisers are now tasked with navigating a critical balancing act: delivering pensions that grow while also reflecting employees’ values. This requires not just guidance but clear approaches, priorities and innovation – for example, through private markets, active ownership and investments that support transition leaders and the achievement of the UN Sustainable Development Goals.

“These are some of the levers available to achieve long-term financial returns with positive sustainability outcomes.”

“Transparency is key; workers want assurance that their pensions are future-proof, both for their retirement and the future world they will retire into.

“Meanwhile, employers must demonstrate how they have considered responsible investment in their workplace offering, especially their default that the majority of employees will be in. These should be key considerations for employers and advisers as they engage and meet employees’ and savers’ expectations.”

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