PensionBee hits £100m target in 34 days to launch fossil fuel-free pension

By Oliver Smith on Friday 18 December 2020

Savings and Investment

“It’s our customers who have made this possible.”

PensionBee hits £100m target in 34 days to launch fossil fuel-free pension
Image source: PensionBee.

Investors have pledged £100m worth of their retirement savings to support the launch of an entirely fossil fuel-free pension fund.

The £100m target, which PensionBee said was required to offer the plan at a competitive 0.75 per cent price, was hit just 34 days after the pensions provider announced it.

PensionBee yesterday announced its customers had already pledged over £34m, with an unnamed workplace pension also having committed “sufficient investment” to Legal & General Investment Management directly to launch the fund.

An entirely new index has been created for the fund, called the FTSE All-World TPI Transition ex Fossil Fuel ex Tobacco ex Controversies Index, with explicit provisions to exclude coal, oil, gas, tobacco, arms companies and more from its holdings.

“It’s our customers who have made this possible every step of the way, first by telling us they wanted a product that completely excludes companies with oil, gas and coal reserves from their investments, and secondly, by pledging to invest in the fund ahead of its launch,” said Clare Reilly, chief engagement officer at PensionBee.

“We believe sustainable investing is the future of engagement with pensions and that everyone should have the option of using their investments for good. We hope this is just the start of all savers using their investment power to transform the world they live in—for the better of the planet, society and their retirement.”

As a result of the target being met, the fund launched on Wednesday and will be available to PensionBee customers starting today.

All of the existing customers who pledged their savings will be invested into the fund as soon as PensionBee can process the transactions.

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