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Could your pension and investments be the key to solving the climate crisis?

Global warming. It’s an issue of huge concern that, despite best efforts amongst individuals, is showing no signs of going away. Forecasts from the United Nations suggests that at its current rate, more than 140 million people worldwide will need to migrate from their regions by 2050, as conditions worsen to create uninhabitable environments.

We know the importance of living sustainably: the mantra reduce, reuse, recycle impressed upon many from a young age. Yet what if the key to solving the climate crisis is actually locked away in your savings account?

In the current economic climate, more and more people are turning to investments to try to preserve the value of their assets in the face of low interest rates and rising inflation, which recently hit its highest rate for 30 years. In fact, at the end of 2020, it was estimated that there was over $35 trillion (or nearly £27 trillion) held in invested pension funds worldwide, whilst asset management companies held a whopping $103 trillion in total. This staggering number is growing year on year, and reflects the money held in invested assets as people attempt to protect and grow their wealth.

But how this money is invested could determine the future of our planet.

Say hello to sustainable investing.

Sustainable investing is a method of investing where assets are invested into funds that help to promote sustainable development. There are numerous ways in which these funds can be selected, and they can include anything from investing in renewable energies, to finding cures to diseases. Sustainable investing also takes into account business impact; invested funds can help to address issues such as world hunger, international health and education, or even equality, and businesses that impact the world negatively are excluded.

What’s more, you don’t have to know everything about investing or research hundreds of companies to invest your money sustainably. An independent financial adviser can offer guidance and suggest ready-made sustainable portfolios that meet your personal requirements, so all of the hard work is done for you.

It is estimated that it would cost $50 trillion to stop global warming before 2050. That’s under half of the currently invested assets worldwide. Imagine what the impact could be if everyone invested sustainably.

Thinking about spending more time doing the things you love?

If you’re contemplating retirement, or want to discuss investment options for your savings, talk to My Pension Expert for advice that could help you improve your income and grow your wealth*. We offer access to discretionary managed investment portfolios and a range of retirement options to suit your needs, so you can be sure that your hard-earned savings are being well looked after. Speak to us today!


*Invested capital is at risk.