ESG pensions research

Planet versus pandemic

In 2022’s ESG member survey, we asked if climate change usurped COVID as a more important long-term priority; if ballooning inflation is sucking the air out of pensions, and how much influence net-zero targets, divestment pressures and other media campaigns have on respondents’ financial decision-making.

The lowdown: 2022’s executive summary

Finding the greenest generation

It's impossible to avoid environmental, social and governance (ESG) headlines. But, after the pandemic, which age group cares the most?

Boomers

Only 12% would increase contributions as a result of knowing more about how their provider was managing their investor rights

Gen X

80% would be more involved with their pension if they knew it was encouraging companies to have a positive impact

Millennials

53% only become aware of what ‘net zero’ is due to publicity around COP26

Generation Z

81% were willing to pay more for a pension with net-zero carbon emissions

 

 

Research highlights

87%

of respondents want their pension to have a net-zero target

57%

said that climate change will have a longer-term impact on the UK economy than COVID-19

84%

want to stop investing into fossil fuels

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: LGIM research: Quantitative research of 4,500 defined contribution workplace pension savers across UK and Ireland, survey taken between January and February 2022.

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.