The emissions from Smart Pension’s default growth fund have been cut by 50 per cent compared to 2019, two years ahead of schedule, the pension provider has revealed.

Smart Pension, which manages more than £2.5bn in assets on behalf of more than one million UK savers, detailed that it had achieved the 50 per cent reduction in its emissions two years ahead of its original reduction target, which it announced last June.

It stated that this was “considerable” progress towards the company’s pledge to make its default growth fund net zero by 2040.

The emission reduction was also ahead of the goals of the Paris Agreement, which called for emissions to be reduced by 45 per cent by 2030 and to reach net zero by 2050.

Smart Pension chief investment officer, Paul Bucksey, commented: “We are delighted to announce that we have halved the emissions in our default growth fund.

“We are proud to be at the forefront of the UK’s sustainability drive, having committed to some of the most ambitious and challenging green targets in our industry, and we are already exceeding them.”

Bucksey also stated that the pension industry had a “golden opportunity” to drive faster decarbonisation by investing in businesses that are serious about cutting their carbon emissions.

“This is exactly why we have an unwavering focus on achieving our 2040 net-zero target. We want to help our members secure not just long-term financial growth but also a safer, healthier world in which they can retire,” he said.

Make My Money Matter CEO, Tony Burdon, added: “The ambition and progress displayed by Smart Pension is good to see.

“We welcome that Smart has acknowledged the critical role our pensions play in tackling the climate crisis, and recognise the important work undertaken to integrate sustainability into its default offer.

“We know this is what savers increasingly expect from their pension schemes, and so this year we need the whole industry to meet this demand with accelerated action.

“Through robust stewardship, real world emissions reductions and investments into industries that are tackling the climate crisis, schemes can shape a better, more liveable world for our retirement, all while delivering good returns for their members.”

The news comes after Smart Pension announced it would offer customers a range of lifestyle strategies that are all sustainable, including the Smart Pension default fund, in January 2023.

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