The new fund targets opportunities aligned with Paris Agreement initiatives.
Investors now have a new fossil-fuel-free fund. The PensionBee Fossil Fuel Free Plan is part of a partnership with Legal & General Investment Management.
The new fund targets investment opportunities with companies working with the Paris Agreement targets. Those include efforts to reduce emissions and to keep global temperature increases below 2 degrees Celsius. It will track the FTSE All-World TPI Transition ex Fossil Fuel ex Tobacco ex Controversies Index.
“We see our role as a pension provider as critical in building the future we want to see, for both the customers we serve and ourselves,” PensionBee’s Chief Engagement Officer, Clare Reilly told Planet Shine.
PensionBee says it reached a third of its target in less than a week; it secured £31 million in commitments to launch the fund.
“We believe that investing in companies who are positioned to capture the benefits from the transition to a low carbon economy will enhance investment returns for savers,” said Emma Douglas, Head of DC at LGIM. She says it’s not just investment returns that motivate savers “but the opportunity to make a difference.”
LGIM research shows that savers want investments that align with their principles, “with climate change being a key theme.”
This launch marks PensionBee’s third responsible investing option out of nine plans. The Fossil Fuel Free Plan joins the Future World Plan and the Shariah Plan. The former invests in companies shifting to an environmentally-friendly economy, and the latter only invests in Shariah-compliant companies.
“The launch of our Fossil Fuel Free Plan takes our commitment one step further seeing us offer two distinct options for environmentally conscious customers,” says Reilly.
“[S]ustainable investing is the future of engagement ,” says Reilly, “with pensions and that everyone should have the option of using their investments for good.