More people are asking for their savings to be invested responsibly and ethically, according to North Staffordshire pensions and savings experts Richard Jacobs Pension & Trustee Services.
With awareness of issues such as climate change rising, Emily Small says questions from investors about which companies pension funds invest in, are now becoming much more common.
In response, Richard Jacobs Pension & Trustee Services is looking to add more responsible and sustainable investments into their portfolios and have specific investments for those with strong ethical views.
Emily, a Director, at Newcastle-under-Lyme based Richard Jacobs Pensions and Trustee Services, said: “We’ve noticed an upward trend of people seeking ethical investments and it is something that is now being catered for by fund managers.
“For most people with a private pension, their pension contributions are the biggest opportunity that most people have to influence investment portfolios. Traditionally people would put money in their pension and the primary objective was to maximise returns, within an appropriate level of risk, however, we are all more aware about issues such as climate change, experiments on animals, arms sales, modern slavery and human rights.
“Pension funds can use voting rights to try to influence how a company behaves. They can also tailor investment portfolios to reflect your concerns.”
In one example, Royal London Asset Management Limited (RLAM) has committed to being a responsible investor. They state: “Greater public awareness and concern has resulted in us as investors being asked more and more challenging questions about how we are being responsible stewards of our clients’ capital,” said the company’s head of responsible investment. “Fundamentally, we believe that considering environmental, social and governance (ESG) issues in the investment process can help us deliver better returns for our customers and clients.”
Richard Jacobs Pensions carries-out pension audits to ensure their clients’ investments are working well. They then search the markets for suitable investment opportunities.