The Sustainable Pension Company has launched today (Tuesday 21) to advise clients about sustainable investing options for their pensions.
The telephone-based service, created by sister company Aspirations Financial Planning, aims to help people invest their retirement savings into sustainable funds that are more in line with their values.
The discretionary managers will review a broad range of global funds that invest in companies which meet ESG criteria and create a series of portfolios.
The portfolios will all have a targeted weighting towards "positive impact" investments, which includes companies that can demonstrate measurable benefits to the world.
TSPC has also provided a guide to sustainable investing for interested investors, which is free to download from the new website.
According to TSPC, the service would be right for investors interested in aligning their pension goals alongside ESG values.
The Bristol-based pensions advice service charges a 1 per cent fee on pension values, which is capped at £5,000, and allows fee payment through the funds themselves. The total annual fee is between 1.5 per cent and 1.8 per cent.
TSPC said the service would be suitable for a client who:
- Has pension funds of at least £50,000 which could be split across several providers;
- Is at least five years away from their chosen retirement age;
- Is a UK resident for tax purposes and intends to remain living in the UK.
TSPC stated: "This service does not provide advice on life assurance or income protection, which most investors should consider before investing."
Roger Milbourn, investment committee chairperson for TSPC, said: “Chances are you have a pension, whether that be a workplace or personal pension.
"So few of us know where these pensions are being invested and I think many ESG-conscious investors would be surprised, and even horrified to know that they have been invested in industries that not only contribute directly to unsustainable practices, but also ones that are potentially harmful to the planet.”
He said this was why TSPC would be dedicated to investigating the best possible ESG investment opportunities for investors, and avoiding greenwashing.
Milbourn added: “The area of sustainable investing and ESG investing is very wide and can encompass many different areas.
"The United Nations' Sustainable Development Goals provides a useful framework with which fund managers can demonstrate which areas their investment portfolios focus on.
"Moving beyond the flow, and assessment of information, it is also important to determine how investing in these firms can help to do good."