According to Scottish Widows, offering green pensions now ranks nearly as important to employees as flexible working opportunities, support with the cost of living and attractive holiday packages.
With a third (32 per cent) of workers currently seeking new employment – and a further quarter (24 per cent) planning to apply to new jobs in the next year – the findings suggest that the provision of more sustainable pensions as part of an employer’s environmental strategy is a key way to attract and retain talent.
However, most employers are not yet aware of the opportunity. Less than half of business leaders (45 per cent) know that their company pension scheme could be driving climate change, the research shows.
“Today’s workers expect employers to show true leadership and offer pensions which are invested responsibly,” explained Maria Nazarova-Doyle, head of responsible investments at Scottish Widows. “Demonstrating a genuine commitment to ESG priorities is not only the right thing to do for the planet, it could also be a game changer for attracting and retaining the best talent. Business leaders have a real opportunity to show staff that they are serious about doing the right thing.”
Many companies remain unaware of how their investments and cash holdings can undermine the progress they are making to develop more sustainable operations. For example, recent research showed that the emissions generated by Microsoft’s investments and cash holdings were comparable to the entire carbon footprint of the manufacturing, transportation and use of every Microsoft product in existence.
Deborah Meaden, businesswoman of Dragon’s Den fame, commented: “Climate change is the biggest existential threat we face, with businesses having a crucial role to play in tackling it. And one of the most powerful tools they have at their disposal is their money.
“By putting their pensions to work, and greening their company schemes, businesses can help address the climate crisis, and give themselves a competitive advantage while they’re at it. The reality is that the most glittering sustainability strategy can be seriously undermined by harmful pensions investments. So, with mounting concerns around greenwashing, it’s critical businesses put their money where their mouths are on climate change. Greening your pension is the perfect place to start.”