London, 22 April 2022 – Impact investment platform CIRCA5000 has ‘gifted’ pension giant Aviva 100 tonnes of carbon dioxide offsetting — roughly the equivalent to the emissions of a diesel car over 600,000km — to counteract the emissions of companies like BP and Exxon Mobil which are held by Aviva in some of its pension portfolios.
Evidenced by a certificate from the UN’s Carbon Offset Platform, the ‘favour’ spotlights the extent to which fossil fuels are propped up by UK pension holders and challenges investors to think carefully about which businesses and initiatives their pensions are supporting.
Aviva is one of the UK’s largest pension providers with £235 billion in pension assets under management. Despite pledging net zero by 2040 and positioning itself as climate action leaders, some of Aviva’s funds continue to invest in the coal and petroleum industries. According to CIRCA5000’s own research, Aviva’s investments are responsible for an estimated carbon footprint of 1,806,739 tonnes.
Coinciding with Earth Day, CIRCA5000 is calling out pension providers that claim to take environmental protection seriously – but continue to invest in polluting companies – and urges them to divest from fossil fuels and take greater responsibility over the impact their funds have on the planet.
In the UK, a staggering £2.6 trillion is invested in pension schemes yet many people have no knowledge of where their savings are going and an estimated £128 billion are invested in non-renewable energy sources. Despite a current lack of choice, experts have said that fossil fuel-free pensions could be over 20 times more powerful in the fight against global warming than giving up meat, flying, or choosing a green energy supplier.
Tom McGillycuddy, co-founder of CIRCA5000 said: “The pensions industry is not doing enough to combat the climate emergency. Without rapid divestment from fossil-fuel companies, pledges around climate goals will be unachievable and amount to little more than greenwashing.
“The stark reality is that investing in any pension portfolio containing fossil fuel businesses is going to have a pretty hefty carbon footprint — and there’s very little a customer can do to filter them out.
“Investing in renewable energy and sustainable business isn’t about making a compromise. CIRCA5000 data shows that, over the long run, investing in renewables shows better returns than fossil fuel companies, which points to the reality that giant carbon footprints can be avoided without pensions having to take a hit financially.
“Ultimately, this is about providing individuals with the opportunity to invest in businesses they believe will build a better future, making rewarding financial returns without costing the earth. It’s why we introduced personal pensions alongside ISAs, JISAs and GIAs – giving our investors the power to choose what they’re invested in.”
CIRCA5000 is the leading impact-investing platform on a mission to make investing effortless, profitable and impactful for everyone. It allows retail investors to invest in companies that are focused on securing a prosperous future for people and the planet, covering areas including clean energy, clean water, sustainable food, breakthrough healthcare, digital education and cybersecurity.
It selects companies on the basis of their positive environmental and social impact using the UN Sustainable Development Goals as a measurement tool whilst at the same monitoring for high potential return on investment.
Carbon offsetting is a way to compensate for carbon dioxide emissions by funding projects that reduce or remove greenhouse gases, such as renewable energy or reforestation.
Pension funds are investment pools that collect and invest money to provide retirement income for employees. They are managed by financial institutions on behalf of the employees.
Sustainable investing refers to investment strategies that consider environmental, social, and governance (ESG) factors alongside financial returns.
A carbon footprint measures the total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product, typically expressed in equivalent tons of CO2.
Fossil fuels are natural substances formed from the remains of ancient plants and animals, primarily consisting of coal, oil, and natural gas, and are used as energy sources.
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