World’s first zero-carbon pension fund launches

by Marc Shoffman from interactive investor |

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Cushon launches net-zero fund in a year where green investing is set to soar.

Environmentally conscious investors can now pick a ‘world first’ pension fund that has net-zero carbon emissions.

Several providers such as BT and Aegon have recently set net-zero targets for their pension scheme portfolios, aiming for 2035 and 2050 respectively.

But fintech firm Cushon has beaten both to it and is now offering what it claims is the world’s first net-zero pension scheme.

It is only available initially as a workplace pension scheme, and comes with its own app to show retirement savers where their money is invested.

Cushon’s scheme achieves net zero by holding climate-aware funds and neutralising any investments responsible for carbon emissions by purchasing carbon offsets. 

A statement from the business says: “We’re excited to have stolen a march on the competition. Cushon’s pension is net zero right here, right now, and we’ve launched it alongside an interactive app, which allows members to see all their pensions, other savings and investments in one place.”

It has a management fee of 0.15%.

David Sinclair, director of the International Longevity Centre think tank, says it is good to see the investment industry stepping up to the challenge of climate change.

He adds: “With the 100-year life becomes a reality for more and more of us, so there is a growing understanding that long-term social and financial sustainability goes hand in hand with environmental sustainability.  

“More of us are going to be demanding sustainable investment initiatives. The industry must grab this opportunity.”

If your employer does not offer a climate-friendly pension scheme, it is possible to build your own using a self-invested personal pension.

Social and environmental themes are predicted to be huge this year, as well as greater transparency across the investment world.

David Macdonald, founder of impact investment-focused financial adviser The Path, says more people raising awareness of environmental issues can only be a good thing. 

He adds: “The arena of workplace pensions, in particular, is very underserved with environmentally friendly options for employees and employers – although Nest does currently stand out as a clear leader." 

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