Almost three-quarters of people in work want their employer to offer a responsibly invested pension.
According to Scottish Widows, 72% believe it’s important that their employer offers pensions that reflect their environmental and social commitments.
Interestingly, this view is particularly strong among younger employees, as 79% of under-55s said responsible pensions matter to them.
That compares with just 61% of over-55s.
This suggests that offering responsibly invested pensions could be a good way to attract and retain younger talent and future-proof your business.
Cost-of-living crisis ‘the biggest issue right now’
Employees were asked about the biggest issues currently facing society, and almost two-thirds (64%) put the cost-of-living crisis at the top of their list.
But following close behind were environmental and social issues, including:
- climate change - 44%
- plastic waste - 37%
- water pollution - 33%
- human rights - 27%
- employee wellbeing - 25%
- biodiversity loss - 24%
- diversity, equity and inclusion - 23%
The study also found that many people are actively researching a firm’s social responsibility credentials before accepting a job.
In fact, seven in ten people polled said they did this before accepting their current position.
People don’t know if employer offers responsible pensions
Despite strong demand for responsible investing, almost half of employees said they don’t know if their current workplace pension is being invested responsibly.
Eva Cairns, head of responsible investment at Scottish Widows, said: “Employees are increasingly seeking to make sure their investments - including pensions - deliver financial return while considering the impact on people and planet, and there is clear demand for more responsibly invested options.”
However, she said that a “big knowledge gap” exists right now, as employers aren’t doing enough to empower employees with “the information they need to make more informed decisions”.
“We believe that considering risks and opportunities related to ESG can help build more resilient investment portfolios,” Ms Cairns continued.
“But it’s also about contributing to a more sustainable future, tackling some of the societal issues people care about.”
Written by James Glynn
Senior Financial Content Writer
