People are becoming more interested than ever in sustainability and the environmental, social and governance (ESG) standards of the companies they buy from and invest in. As a member of a workplace pension, you too are an investor. Just like you can make lifestyle choices with the environment in mind, like recycling and reducing your carbon footprint, you can also make sustainable choices for your pension.
What is sustainable investing?
We use the term ‘sustainable investing’ to encompass ESG issues and related topics. ESG stands for Environmental, Social and Governance. Analysing ESG factors can be a way to assess the sustainability and social impact of an investment in a company and to identify risks. Fund managers can incorporate this information into their investment process. Some of the things that might be considered are:
- Climate change
- Greenhouse gas (GHG emissions)
- Resource depletion, including water
- Waste and pollution
- Loss of biodiversity
- Working conditions, including slavery and child labour
- Local communities, including indigenous communities
- Conflict regions
- Health and safety
- Employee relations and diversity
- Executive pay
- Bribery and corruption
- Political lobbying and donations
- Board diversity and structure
- Tax strategy
- Minority shareholder rights
Busting sustainable investing jargon
Our ‘jargon buster’ can help you understand common sustainable investing terms.
Check your investments
It’s a good idea to regularly assess where you are invested to make sure your fund choices align with your values and overall retirement savings goals. Check where your pension is invested by logging into PlanViewer.
Important information - Investors should note that the views expressed may no longer be current and may have already been acted upon. The Investment Manager’s focus on securities of issuers which maintain sustainable characteristics may affect the fund’s investment performance favourably or unfavourably in comparison to similar funds without such focus. The sustainable characteristics of securities may change over time. No representation nor warranty is made with respect to the fairness, accuracy or completeness of such credentials. The status of a security’s ESG credentials can change over time. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.