Smart Pension has partnered with Make My Money Matter (MMMM) and committed to achieving net-zero and halving its carbon emissions “well ahead” of the 2050 and 2030 deadlines outlined in the Paris Agreement.

The master trust also intends to introduce an allocation to a new social impact fund, which it said would capture investment opportunities that offered solutions to environmental and social challenges, such as healthcare solutions for ageing populations, social housing and gender equality in employment.

Smart Pension added that the transition was expected to have a material impact on the value of investments over each member’s pension lifespan, with the master trust predicting that the pledge would bring both positive environmental and financial outcomes for Smart Pension’s members.

Smart Pension Master Trust managing director, Paul Bucksey, commented: “Achieving great risk-adjusted returns for members while investing for long term environmental and societal benefits aren’t mutually exclusive objectives, and it is important that trustees and scheme sponsors grasp the opportunity that this offers.

“Having repositioned the Smart Pension default investment strategy to focus on companies with high environmental, social and governance scores, and with an upcoming additional allocation to social Impact, we’re delighted to further underline our commitment to sustainable investing by partnering with MMMM.”

Following commitments by several UK pension industry giants, there are now over 13 million UK Net Zero pensions since the launch of MMMM’s campaign last year.

MMMM co-founder, Richard Curtis, said: “As one of the first master trusts in the UK to appoint a head of sustainable investing, we applaud the further measures that Smart Pension will take – such as proactive impact investment into solutions that actively tackle climate change and social issues.

“This robust pledge shows that the pensions industry can harness its hidden superpowers to not only deliver health returns, but also a healthy planet to retire into.

“Smart Pension joins a growing list of organisations stepping up to ensure their pensions are fighting, not causing climate change, and we urge all schemes to follow suit ahead of the international climate change conference this November.”

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