While most Brits are well aware of how to reduce their carbon footprint through changing their behaviours, more than two thirds (67 per cent) don’t know how to switch to a ‘green pension’, research from Scottish Widows has revealed.

Scottish Widows’ second annual Green Pensions Report found that there is growing appetite for responsible retirement savings propositions among employers and employees, with nearly three quarters (74 per cent) of savers expressing a keen interest in obtaining more information about sustainable options for retirement savings.

The group also highlighted the potential climate benefit of switching, with its analysis showing that, by opting for a green pension, members could save up to 386 million tonnes of carbon emissions annually, the equivalent of 11 return flights from London to New York per person.

Despite this, savings and pensions ranked last in terms of perceived impact on climate change amongst a range of factors in an individual’s lifestyle, and almost one in seven (13 per cent) did not realise that there are differing environmental impacts across pension funds.

In addition to this, only 10 per cent of employees surveyed had fully switched to green pensions, primarily due to a lack of information and access to green pensions.

Indeed, according to the survey, nearly a quarter (23 per cent) of companies surveyed do not offer green or ethical pensions to their employees.

Given this, Scottish Widows urged the government, employers and pension providers to make sustained efforts to educate the UK workforce about the potential environmental, social, and financial benefits of responsibly-invested pensions.

Scottish Widows responsible investment lead, Shipra Gupta, said: : “Our latest Green Pensions Report demonstrates a critical need for heightened awareness and action regarding the role of green pensions in mitigating carbon emissions.

Gupta continued: “Understanding of the climate crisis has changed dramatically over the last few years, with countries and organisations being bolder in their net zero targets and individuals making changes in their lifestyles to cut their household carbon emissions.

“Yet most people are still unaware that pensions are one of the most powerful tools at our disposal to make real progress towards net zero.

“This report serves to spread awareness for individuals, employers and policymakers alike.

“By embracing responsible investment approaches for our retirement savings, we each have a tangible means to decrease our individual carbon footprint and collectively combat climate change.”

Environmental advocate, Jarvis Smith, added: “Tackling climate change is a global problem, and we each have a part to play.

“Our pensions are a tool not only to protect our own futures, but the future of our planet.

“We have the means to make a difference with our pensions, and if the people of the UK all took advantage of the opportunity to switch to a green pension, we could collectively prevent almost 400 million tonnes of carbon emissions – all while hardly lifting a finger. It is one of the most important and straightforward switches you can make.”

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