Pension members’ green light for ESG investing

In one of the toughest economic climates in decades, UK workers might be forgiven for being wary of having to pay more for anything. Yet our latest research suggests that most DC pension savers would be prepared to pay higher fees to see their pension funds supporting ‘green’ initiatives.

The lowdown: 2023's summary

Research highlights

72%

said they’d pay higher fees to invest in infrastructure that supported renewable energy sources such as solar parks and wind farms

71%

worry that climate change will push up food prices further

78%

of Gen Zers would be prepared to pay higher pension fees to support net zero targets

Integrate ESG into your members’ portfolios

Target Date Funds

Our Target Date Funds offer members retirement savings vehicles which aim to offer growth and then de-risk in line with members’ anticipated retirement date, with an allocation to income-generating securities.

The Future World Multi-Asset Fund is a core diversified growth component of our Target Date Funds.

Find out more about our Target Date Funds

Future World Multi-Asset Fund

The fund’s building blocks are ESG-tilted, constructed and weighted by the index provider based on the ESG scoring of the eligible constituents. The fund incorporates the Future World Protection List, which excludes companies that fail to meet minimum standards of globally accepted business practices, and the Climate Impact Pledge, which is a targeted engagement process to invest in companies that are most committed to meeting the Paris Agreement’s 2°C global warming target.

Find out more about our Future World Multi-Asset Fund

Source: Legal & General Investment Management (LGIM) survey in June 2023 of the views of 3,634 defined contribution workplace pension members on environment, social and governance investing. Respondents were split across generations and genders and across the UK.

Key risks

The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.