Ethical Pension

Lordoftheisles

Can anyone suggested an ethical pension provider please?  I don't think I want to shift my existing pension, but I am keen to start a new, ethical, pension.  I would like to reduce my carbon footprint. I understand that there are pension plans which avoid environmentally degrading companies. any constructive advice would be very welcome. Please note that my understanding of pensions and investing in general is very basic.
Richard

dunstonh

Can anyone suggested an ethical pension provider please? 

No such thing in reality.   A pension provider is just a software and administrator provider.  

 I understand that there are pension plans which avoid environmentally degrading companies.

Pretty much all SIPPs or whole of market pensions can meet that objective.  It is the investments you appear to be talking about.  Not the pension provider.    So, a SIPP should give you the choice to meet your ESG beliefs.

[Deleted User]

Ethical: Building a good size pension so you don’t need assistance later on in life.
Silly: mixing investment and charity. Do them separately. 

All “ethical” funds are but a marketing gimmick. For example there are companies producing biofuels. Sounds wonderful, all “ethical” funds have them.  The trouble is, biofuels produce lots of CO2. Can’t grow corn without massive energy expenditure. In the mean time you are degrading the environment by having huge corn fields which are like a desert to bees, plus all the pesticides and groundwater contamination. 

jamesd

Lordoftheisles said:

Can anyone suggested an ethical pension provider please?  I don't think I want to shift my existing pension, but I am keen to start a new, ethical, pension.  I would like to reduce my carbon footprint. I understand that there are pension plans which avoid environmentally degrading companies.

I'm sorry to say that I don't know of any pension investments that meet the objectives you've given.

Perhaps the biggest issue would be funds that describe themselves as ethical or environmental but unethically either don't  invest in nuclear power related companies or do invest in onshore wind farms. Some might have invested in a green bond to buy a new oil tanker last year, called green because it's to use liquid natural gas instead of heavy fuel oil for its engines as it commutes between North Sea oil fields and Norway. You're going to need to carefully investigate the practices of any fund to determine whether it fits your personal definitions.

A pension has two parts:
1. the pension provider, which deals with you and much administration
2. the fund or funds that you choose within the pension, there are commonly from a hundred or so to thousands to pick from.

So as a first step you might start to investigate the funds available through your current provider and the provider's own practices. If those tests are failed, next step would be trying to find suitable funds in the broader market and an acceptable provider that makes them available to you.

Expect a time-consuming and frustrating search.

grumiofoundation

Got an email couple days ago from PensionBee about a 'new' fossil fuel free pension. 0.75% fee, don't know how this compares to other 'ethical' investments wither in fees or in investments. 

Haven't looked into it myself (yet) - as said above researching whether a given 'ethical' fund fits with your objectives/ideals is needed rather than assuming ethical means ethical!

Edit - apparently will track FTSE All-World TPI Transition ex FF ex Tobacco ex Controversies index
https://fundcentres.lgim.com/uk/en/fund-centre/PMC/FTSE-TPI-Global-ex-Fossil-Fuels-Equity-Index-Fund#Overview

jamesd

Interesting but it's certain that it can't possibly genuinely be "fossil fuel free". This is because thousands of companies and millions of employees are involved and just one person using a fossil fuel vehicle  (perhaps public transport) or electricity (whether grid or not) involves use of fossil fuel.

[Deleted User]

jamesd said:

Interesting but it's certain that it can't possibly genuinely be "fossil fuel free". This is because thousands of companies and millions of employees are involved and just one person using a fossil fuel vehicle  (perhaps public transport) or electricity (whether grid or not) involves use of fossil fuel.

Also, nobody at this company would be permitted to eat. Food production requires fossil fuels.  Nor can they use computers. Computers use electricity, a large fraction of which comes from fossil fuels. No manufactured components either.  

Cus

If you want to ethically invest then funds like the above might be a start. Don't kid yourself that what you are investing is 100% ethical but alternatively don't use that as an excuse to not to at least try to be ethical.

cfw1994

Another odd one....someone who has been on MSE over 5 years, yet only posted twice.  

Look forward to hearing how they take the advice several people have taken time to post!