PensionBee has launched a climate investment plan that sets a "clear standard" for climate-focused pensions based on the goals of the Paris Agreement.

The plan, which has an annual management fee of 0.75 per cent, will aim to align worker pensions with the 1.5°C goals of the 2015 Paris Agreement and go further than the EU’s 7 per cent year-on-year minimum carbon intensity reduction by aiming to reduce by least 10 per cent.

It excludes fossil fuel producers and commits to continually reducing the total intensity of greenhouse gas (GHG) emissions produced by companies, so even if the global economy uses more carbon over time, the plan will move in the opposite direction, always using less.

The new fund will screen out unsustainable palm oil use, weapons, gambling, alcohol, tobacco, for-profit prisons and companies embroiled in environmental controversies.

It will also increase the scope of exclusionary screens based on changing customer expectations, as revealed in a recent survey conducted by PensionBee.

In February 2024, a survey of workers found that 62 per cent supported reducing carbon exposure in their portfolios, and 98 per cent backed adding new exclusions like unsustainable palm oil, gambling, weapons, and environmental controversies.

Commenting on the launch of the climate plan, PensionBee chief engagement officer, Clare Reilly, said: “All our investment solutions are designed for our customers, who play a crucial role in shaping our plan range. The climate plan continues our growing history of customer-led product innovation. The environmental challenges we face as a planet are fast-moving, and so are the solutions to address them.

“We remain committed to evolving and advancing our sustainable plan range, to respond to the changing expectations of customers and to reflect the newest approaches to climate-focused pension saving.

“By directly responding to customer sentiment, we are proud to deliver a pension plan that prioritises impactful climate action and meets today’s environmental challenges head-on.”

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