Sustainable pension plan
Invest in your future with our ethical, green pension options. Make a positive impact without sacrificing returns.
As with all investments, your capital is at risk.
Align your savings with your values
We believe that environmental, social and governance (ESG) matters are crucial for the future of our planet.
Our Sustainable plans aim to balance positive impact with potential returns, aligning your savings with your values.
The Sustainable plan has a simple all-in fee structure: an annual fee of 0.75% for savings under £100,000, and 0.4% for any amount over £100,000.
Partnering with BlackRock
We're proud to collaborate with BlackRock, the world's largest investment manager, to protect and grow our customers' pension savings with our Sustainable plan through BlackRock’s MyMap Select ESG funds.
BlackRock's MyMap Select ESG funds invest across thousands of companies and other assets. All three funds have a climate objective to:
- Reduce carbon emissions by 30% compared to a portfolio that holds an equivalent rating
- Invest at least 80% of their government bonds with sovereigns with improved ESG credentials*
Personalise your investment risk
Tailor your pension to fit your stage of life and investment preferences. It's easy to adjust your risk level in a couple of taps, online or with our app.
Level 5: Highest growth potential and risk
More than 15 years from retiring. Aims for long term growth. 100% exposure to sustainable equities.
Level 3: Low to medium growth potential and risk
Around 3 to 15 years from retiring. Aims for moderate growth. Balanced risk profile across sustainable investments.
Level 1: Lowest growth potential and risk
Retiring in the next 2 to 3 years. Aims to protect your pot value. Low risk sustainable investments.
Sustainable plan FAQs
There is more information on BlackRock's website for each of the funds that our Sustainable plan risk levels use:
- Sustainable plan, Level 1: BlackRock MyMap 3 Select ESG Fund
- Sustainable plan, Level 3: BlackRock MyMap 5 Select ESG Fund
- Sustainable plan, Level 5: BlackRock MyMap 7 Select ESG Fund
Our Sustainable pensions balance investments in stocks, which generally have more growth potential and ups and downs, and bonds, which are usually more stable:
- Sustainable plan, Level 5: Level 5 out of 7 on the risk and potential reward scale.
- Sustainable plan, Level 3: Level 5 out of 7 on the risk and potential reward scale.
- Sustainable plan, Level 1: Level 4 out of 7 on the risk and potential reward scale.
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.
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.
Once your Penfold pension has been set up, tap 'Your Plan' on the dashboard. There you can switch your pension investment option to our Sustainable or Lifetime plans, or one of four of our Standard plans.
Find out more about our other pension plans.
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