The Art of Green Finance

If you’ve cleared debt and have some emergency savings, your next step towards good financial health may be to start a pension. And pensions really matter to climate finance because pension finance is huge! 3 trillion pounds worth of huge in the UK alone. So, collective power in this area really can make a difference.

Campaign group Make My Money Matter has been leading the way in this area. They estimate that greening your pension is one of the most effective ways of cutting your climate footprint. Choosing the right pension can also help move money away from industries involved in deforestation.

If you already have a pension, find out how your pension ranks in terms of climate performance. Then ask your current pension provider to improve their green credentials. If you are a public sector worker, for example, if you work for the NHS, there is no actual pension pot to switch, but this may be relevant if you also have a private pension.

If you have asked your pension provider to improve their performance and are still unhappy with the results, you could consider moving your pension. However, you need to be confident that you either understand pensions really well, or take independant advice, ideally from an ethical financial advisor such as The Path or Bluesphere, both B Corps.

Pension funds that might be considered include the Nest Ethical Fund or Pension Bee funds. Remember though, pensions are an investment and you could get back less than you invest. Taking advice is recommendede unless you are an expert in this area.