ESG pensions research

Pension members’ green light for ESG investing

In one of the toughest economic climates in decades, UK workers might be forgiven for being wary of having to pay more for anything. Yet our latest research suggests that most DC pension savers would be prepared to pay higher fees to see their pension funds supporting ‘green’ initiatives.

Is global instability fuelling DC pension member thirst for illiquids?

They might be unfamiliar with the term ‘illiquids’, but our recent research suggests that most DC pension members want them.

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Cost-of-living crisis hasn’t dimmed pension members’ green light for ESG investing

In one of the most extensive pieces of research into DC pension savers’ views that we’ve ever conducted, we found that most would pay more for investments which could make them less vulnerable to long-term financial risks.

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Why Generation Z want ESG action through their pensions

It’s nothing new for young generations to want to appear different from their predecessors. But when it comes to Generation Z, they really could claim to be different when it comes to their pensions.

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Why ESG knowledge is pensions power for DC members

In just three years we’ve had the visceral shock of the pandemic, fears that warfare overseas could undermine domestic stability and, of course, the cost-of-living crisis. Expecting UK workers to prioritise their pensions could be a tough ask right now.

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Research highlights

72%

said they’d pay higher fees to invest in infrastructure that supported renewable energy sources such as solar parks and wind farms

71%

worry that climate change will push up food prices further

78%

of Gen Zers would be prepared to pay higher pension fees to support net zero targets

Find out more about our default funds

Target Date Funds

Our Target Date Funds offer members retirement savings vehicles which aim to offer growth and then de-risk in line with members’ anticipated retirement date, with an allocation to income-generating securities.

The Future World Multi-Asset Fund is a core diversified growth component of our Target Date Funds.

Find out more about our Target Date Funds

Source: Legal & General Investment Management (LGIM) survey in June 2023 of the views of 3,634 defined contribution workplace pension members on environment, social and governance investing. Respondents were split across generations and genders and across the UK.

Key risks

The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested. The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing is available from LGIM’s Fund Centres.

While LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.

LGIM’S environmental, social and governance (ESG) member research 2023

Is global instability fuelling DC pension member thirst for illiquids?

Cost-of-living crisis hasn’t dimmed pension members’ green light for ESG investing

Why Generation Z want ESG action through their pensions

Why ESG knowledge is pensions power for DC members

72%

said they’d pay higher fees to invest in infrastructure that supported renewable energy sources such as solar parks and wind farms

71%

worry that climate change will push up food prices further

78%

of Gen Zers would be prepared to pay higher pension fees to support net zero targets

Target Date Funds

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