PensionBee teams up with Legal & General on fossil fuel-free pension fund

By John Reynolds on Monday 16 March 2020

Digital Banking

The launch of the pension fund follows complaints to Legal & General that Shell was still included in its ethical funds.

   PensionBee teams up with Legal & General on fossil fuel-free pension fund
Image source: image of Romi Savova provided by PensionBee

PensionBee is to launch a fossil fuel-free pension fund in partnership with Legal & General, as it looks to ramp up its green credentials.

The ethical pension fund will launch later this year and follows pressure on Legal & General from PensionBee and other clients, complaining that oil giant Shell was still included in its ethical funds.

It also comes amid research carried out by the fintech pension provider showing that over a third (34 per cent) of its environmentally-conscious customers which invest in its Future World Plan- which invests money into companies that pledge to move to an environmentally-friendly economy- think the time for engagement with oil companies is over.

This tranche of investors wants to exclude oil from their pensions, even if it means a potential reduction in their profitability.

Last year, a public letter written to Legal & General from PensionBee’s Chief Executive, Romi Savova, questioned the ongoing inclusion of Shell in its climate-conscious Future World fund.

PensionBee handles around £750m-worth of client assets for more than 75,000 customers.

The entire stock list for the ethical fund has hitherto not been confirmed but it is to exclude oil companies, coal manufacturers and tobacco companies.

In October last year, Savova said it was witnessing a boom in responsible investing.

Clare Reilly, Head of Corporate Development at PensionBee, said: “Everyone should have control over where their money is invested. Our new fossil fuel-free fund will finally offer consumers a practical way to completely exclude oil from their investments. 

“We hope this is just the start of all savers using their investments to transform the world they live in - for the better of the planet, society and their retirement. We are proud to be the first provider to offer a fund of this type and look forward to its launch later this year."

Sign up for our newsletters

Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.