Online consolidator PensionBee has launched a fossil fuel free fund investing in companies that are aligned with the Paris climate agreement.
The launch comes after a year of campaigning by PensionBee, and follows a pledge of support from existing customers who committed to switch to the new Fossil Fuel Free Plan as soon as it became available.
In order to launch, PensionBee needed to secure a commitment of £100m from its customers to be able to charge an all-in fee of 0.75 per cent, with a reduced fee of 0.38 per cent on any savings over £100,000.
According to the firm, in less than a week it had reached a third of its target, securing £31m in commitments.
Since then another investor has emerged with sufficient investment to launch the fund.
As a result the fund launches today (December 17) and will be available to customers from tomorrow.
All of the firms’ existing customers who have already committed to investing in the plan will have their assets invested into the fund as soon as they can be processed.
The Fossil Fuel Free plan, created in partnership with Legal & General Investment Management (LGIM), will exclude companies with oil, gas or coal reserves, as well as tobacco companies and manufacturers of controversial weapons.
The new plan is PensionBee’s third responsible investing option, from a total of nine plans currently on offer.
It joins the Future World Plan, which invests in companies that pledge to move to an environmentally-friendly economy, and the Shariah Plan which only invests in Shariah-compliant companies.
Clare Reilly, chief engagement officer at PensionBee, said: “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.”
Last month (November 16), reports emerged that PensionBee was looking to float on the London Stock Exchange in a move which will see it valued at £300m or more.
According to The Times, the consolidator was seeking bank advisers for the float and planned to make an appointment before Christmas.
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