The Co-op has partnered with Make My Money Matter (MMMM) as part of its 10-point plan to achieve net zero by 2040, with plans to report on the carbon footprint of its largest pension scheme annually as of next year.

As part of the partnership, the Co-op will be engaging with employees to increase transparency on how their pension pots are invested and to gain a better understanding of their sustainability priorities.

It will also work with fund managers to understand how they plan to align themselves with a move to a net-zero economy, with its largest pension scheme also committed to reporting on its carbon footprint annually from next year.

The move builds on a number of climate-related changes that the Co-op and scheme trustees made in 2019, including the introduction of a sustainable lower-carbon default option for its DC scheme, as a result of being a seed investor in the Legal & General Future World Multi-Asset Fund.

This is alongside changes to the groups self-select funds earlier this year, which gave members more options to invest in organisations with sustainable credentials.

The partnership was announced as part of the Co-op’s broader 10-point plan to reach net zero by 2040, which outlines how the group will reduce the impact of its operations across its Food, Funeralcare, Insurance and Power businesses, covering products, packaging, power and pension fund investments.

Commenting on the news, Co-op people director, Gary Dewin, said: “We are clearly facing a monumental climate change crisis and must recognise that we have a part to play. We simply have to do more and quicker.

“By partnering with MMMM and committing to engage with our members and our pension funds, we’re providing our members and colleagues with another way to help combat the climate change crisis through sustainable investments.”

MMMM CEO, Tony Burdon, added: “The Co-op is a company known for its values, and its commitment to unleash the power of its pension scheme is a great first step to build a future that is actually worth retiring into.

“We believe that green pensions should be the new normal for any organisation committed to tackling the climate crisis – and that all new employees should be given a green option when starting a new job.

“With COP26 on the horizon, this is a crucial year for climate across the globe. With a growing demand from across society to “build back better” from this pandemic and to build a net zero world, the time for action is now.”

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