Sustainable pension plan
Make a positive impact on the world without sacrificing pension pot growth by selecting our ethical, green pension option.
Save in line with your ethics
We believe that environmental, social and governance (ESG) matters can have a huge impact on the future of our planet. Our Sustainable plan is the best way to make a positive impact on the world without sacrificing investment returns.
The plan uses a mix of ESG screening and enhancing as well as a focus on socially responsible investing. It invests a larger percentage in companies with the highest ESG rating compared to peers and removes any investments that underperform.
The Sustainable plan has one simple all-in fee. You'll only pay an annual fee of 0.75% for savings under £100,000, or 0.4% for any amount over £100,000.
Risk level choices
Tailor your pension to fit your stage of life and investment preferences
Level 5
Highest growth potential. Highest risk
• More than 15 years from retiring
• Aims for long term growth
• 100% exposure to sustainable equities
Level 3
Low to medium growth potential. Medium to high risk
• Around 3 to 15 years from retiring
• Aims for moderate growth
• Balanced risk profile across sustainable investments
Level 1
Lowest growth potential. Lowest risk
• Retiring in the next 2 to 3 years
• Aims to protect your pot value
• Low risk sustainable investments
It's easy to adjust your risk level in a couple of taps, online or with our app.
What is ESG?
ESG stands for Environment and Social Governance and is used by investors to refer to a set of standards and governance used by corporations that shape their strategies for managing their impact on the world.
ESG is often confused with sustainability or green issues, but it encompasses a broader set of factors, including how a business interacts with its employees, customers, and local communities.
Companies focusing on ESG issues have reduced costs, improved worker productivity, lowered risk potential, and demonstrated greater revenue-generating opportunities. In short, a strong ESG rating is good for business performance and, therefore, attractive to the investor community.
In collaboration with BlackRock
We're proud to collaborate with the world's largest investment manager, BlackRock, to protect and grow our customers' pension savings with the Sustainable plan.
BlackRock's sustainable MyMap fund invests across thousands of companies and other investment assets. Through its advanced technology it aims to invest only in companies that meet high sustainability standards and scores.
When selecting the types of companies it can invest in, it considers a broad spectrum of ESG themes, such as climate change, natural resources, pollution and waste, environmental opportunities, human capital, product liability, stakeholder opposition, social opportunities, corporate governance and corporate behaviour.
BlackRock has three ways of improving the sustainability of the portfolio, these are:
- ESG Screening - excluding companies and sectors with negative environmental or social impacts like tobacco or weapons from the portfolio.
- ESG Enhancing - allocating more of your money towards companies with higher sustainability scores
- SRI (Socially Responsible Investing) - focusing on companies with the highest ESG ratings relative to their peers in each sector.
Pension power
We believe transparency is a vital part of sustainable investing - you should know exactly where the money in your pension is, so you can align your investments with your ethics.
Our Explore Your Pension feature gives you complete visibility into your pension, highlighting which industries and countries your plan invests in, as well as which individual companies are included.
Explore Your Pension also makes it easy to vote by proxy - you can opt-in to be notified any time companies you’re invested in hold their Annual General Meetings (AGMs). Then, when the boards discuss issues like climate change or social responsibility, you can have your say right from our dashboard. If enough savers do the same, your opinion will be aired at the AGM.
Make all your pensions sustainable
If you’re trying to make more planet friendly decisions in your everyday life, have you thought about how your existing pension pots are invested?
Pension funds invest in all sorts of businesses around the globe. By combining your old pensions into the Sustainable plan, you can relax in the knowledge that your savings, like you, are trying to do the right thing.
Learn more about our pension transfer service.
It is important to compare providers’ fees and any guaranteed benefits when deciding on whether to transfer, and be sure that the investments available are suitable for you. We cannot accept defined benefit pension transfers. If you decide to close your Penfold account and the value of your pot has gone down, the amount returned to the provider may be less than what you originally transferred.
Please know that if your employer is paying into your pension currently, transferring that pot may mean you lose out on their contribution. For more information on the risks see here.
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