Less than half (45 per cent) of UK CEOs and business leaders are aware that their company pension scheme could be contributing to climate change, according to research from Make My Money Matter (MMMM).

Earlier analysis by the campaign group and sustainability research house Route 2 showed that the investments of UK pension schemes allow an estimated 330 million tonnes of carbon to enter the atmosphere every year – more than the UK’s entire national carbon output.

This lack of awareness among CEOs and business leaders is also reflected in the sustainability plans of FTSE 100 companies, as further research from MMMM found that only eight mentioned their company pensions in their public sustainability strategies, despite the investments of their scheme potentially being one of their most significant climate impacts.

The “failure” of businesses to recognise the climate impact of corporate pensions represents a significant omission for business leaders, according to MMMM.

This action is also at odds with a growing trend to set wider climate targets for overall corporate activity, and many risk contradicting their wider sustainability goals and further driving the climate crisis.

Earlier research, conducted by MMMM, Route2 and Aviva, highlighted that ‘greening’ your pension is 21 times more powerful at cutting your carbon than giving up meat, stopping flying and switching to a renewable energy provider combined.

The research found that 44 per cent of CEOs planned to explore a more sustainable company pension in the next 12 months.

MMMM co-founder, Richard Curtis, commented: “Businesses have rallied to become more sustainable over recent years, however, many are failing to use one of the most powerful tools at their disposal – their company pensions.

“With £20bn invested each year through these company schemes, the potential of this money is extraordinary.

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