Smart Pension has pledged to cut the emissions of its default growth fund by 75 per cent by 2030, with specific plans to focus on decarbonisation, rather than using offsets.

The new interim target is aligned with the company’s target to make its default growth fund net zero by 2040, as well as one of the key focuses of this year’s COP 28, to fast-track the energy transition and slash emissions before 2030.

As part of its commitment, the group will aim to prioritise decarbonising over offsetting emissions.

The new commitment comes after Smart Pension announced it had more than halved the emissions of its default growth fund emissions in 2022, two years ahead of its initial target, as well as becoming one of the first UK pension providers to offer customers a range of growth funds that are all fully sustainable.

Commenting on the plans, Smart Pension chief investment officer, Paul Bucksey, stated: “We are delighted to announce this new interim target to reduce emissions in our default growth fund even further.

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

“The pension industry has a golden opportunity to drive faster decarbonisation, by investing in businesses that are serious about cutting their carbon emissions.

"We continue to secure our members long-term financial growth by investing sustainably, which will lead to a safer, healthier world in which they can retire.”

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