Sustainable pension investing
Investing sustainably through ESG funds, like our Sustainable plan, may not only have an impact on the development of the world economy, but also lead to better long-term returns and provide resilience and diversification when markets are volatile.
ESG explained
Environmental
Covers climate risks, natural resources scarcity, pollution and waste, and environmental opportunities.
Social
Includes labour issues and product liability, risks such as data security, and stakeholder opposition.
Governance
Encompasses how businesses behave, particularly their management.
Carbon emission targets
Our Sustainable plan is based on BlackRock's MyMap 5 ESG fund, for savers who want to align their sustainability preferences with their investment goals.
The MyMap 5 ESG fund targets a reduction in its portfolio’s carbon emissions intensity by 30% relative to an equivalent non-ESG fund as well as an ongoing reduction in carbon emission intensity.
The fund is required to invest at least 80% of its assets in sustainable strategies and at least 80% of its government bonds into sovereigns issuers with an ESG sovereigns who have improved ESG credentials.*
*Sovereigns with improved ESG credentials are those who have an ESG rating of BB or higher.
Sustainable plan compared
The carbon emissions target is achieved by applying varying levels of screening as well tilting the portfolio towards a broad spectrum of ESG themes such as climate change, natural resources, pollution and waste, social opportunities and corporate behaviour.
The 'MyMap 5 Select ESG' graph compares:
- The EU Climate Transition benchmark, which requires a reduction in emissions of 7% year on year.
- The carbon intensity of the MyMap 5 Select ESG fund
- A comparable non-ESG strategy with emissions reduced by 30%
- A comparable non-ESG strategy
This is strong evidence that the fund behind our Sustainable plan is achieving its stated aim of being 30% better than the overall market.
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