Your Pension Can Offset Carbon Emissions

Your Pension Can Offset Carbon Emissions

By CIRCA5000 TeamBack to Mission Control

Lucy O'Boyle • Investment updates • 3 min read

The team at CIRCA5000 believe that you shouldn’t have to make extreme sacrifices to do good. You can take actions that will benefit you and help the planet.

One of those actions is moving your pension to a sustainable fund to offset your carbon footprint.

Before we dive into how you can use your money to have a positive impact on the planet, we will add one thing. Your choices as an individual can and do make a positive impact.

But, the pressure and responsibility to reduce carbon emissions on a larger scale fall firmly on the shoulders of the world’s biggest fossil fuel companies, and businesses involved directly with deforestation and loss of biodiversity.

That said, as people living in one of the world’s wealthier countries, we have a larger carbon footprint than those living in less developed countries on the front lines of climate change.

The average British citizen creates the same carbon footprint in a single fortnight as people in some African countries would have in an entire year (MoneyExpert).

So, what can we do about that? If you google ‘How to reduce my carbon footprint?’ you’ll come up against calculators and a long list of ways to reduce your carbon footprint. Let’s make it simpler.

And the average carbon footprint of a person living in the UK is around 7 tonnes a year, which is about the weight of a large African elephant.

That number is made up of everything we do that releases Co2 into the atmosphere — catching flights, your roast dinner on a Sunday, and heating your home. Make My Money Matter compared the greenhouse gas emissions from a broad global equity pension fund vs an equity-focused sustainable pension fund and then measured the emission saving per sterling pound invested.

The research concluded that switching pensions to a sustainable fund for an entire year could lead to a (carbon) ‘saving’ of 0.64 KG per £1 invested (MakeMyMoneyMatter).*

Therefore, a pension worth £10,000 moved into a sustainable pension fund could offset the 7 tonnes of carbon emissions produced by the average person in a year. 

The average lost pension is worth £23k (ABI)

The average lost pension is worth £23k (ABI). If you have that amount in old workplace pensions, then doing the maths, if £10,000 were moved into a sustainable pension then that can offset one year’s worth of emissions, doing that with an average lost pension (£23K) would offset two years. And, no one is telling you to give up the things you love. 

CIRCA5000 is an impact investing platform, our mission is to make it simpler for people to invest in companies aligned with solving the world’s problems through themes such as Clean Water and Sustainable Future of Food.

This type of impact can be referred to as ‘associated impact’.

For example, our Global Clean Energy fund includes companies replacing traditional fossil fuels with solar, wind energy and hydroelectricity production. 

CIRCA5000 aims to make market returns or above while solving world problems. All of the companies within our funds are listed and have gone through a meticulous process to assess their growth trajectories and measure their real-world impact.

We can find your old pensions for free, and our dedicated customer service team can track them down using the names of companies you worked at. Our pensions are fee-free until April 2023. No more juggling multiple pensions from your old jobs. Your pension in one place.

The information provided above does not constitute financial advice. As with all investing your capital is at risk. 

For more information on how sustainable pensions can make carbon savings: 

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