Charity staff want ethical pensions investment

Nearly three quarters (72%) of charity workers believe ethical investment is one of the most important attributes for their pension scheme.

The ‘Survey Report on Charity Worker’s Views on Responsible Investment’ conducted by The Pensions Trust, found the pensions pot at retirement is the most important attribute of a pension for the majority of charity workers. However, investment in ethical companies also scored very highly.

Charity workers want their pension provider to take action and be much more engaged shareholders. They want providers who look at environmental, social and corporate governance (ESG) performance (69%), providers that are active in voting engagement (67%) and schemes that undertake positive screening (63%).

When asked what positive practices charity workers would like to encourage companies to undertake, 83% said helping to improve the standards of living for people in the developing world as well as treating workers and communities fairly and minimising a company’s impact on the environment were extremely important.

Sarah Smart, chair of the trustee of The Pensions Trust, said: “We wanted to get views from the charity sector about what was important to them when considering their investment and it is clear that they want ESG issues to be high on the pensions investment agenda.

“Furthermore, with 61% of respondents claiming they are likely to invest more responsibly in the future, we can clearly see this is becoming an influential and key deciding factor for people choosing their pension funds.”

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