Scottish Widows workplace pension savers will be able to use a tool to find out how environmentally friendly their investments are.
The provider will launch an app feature this month, called Find Your Impact tool, which assesses companies’ carbon footprint, waste and board diversity so members can see where their money is invested and whether these companies are making a positive impact across these areas.
It will also allow members to give their views on a range of investments and proposals, including questions on specific companies and their practices.
Members will be able to see how their investments are performing financially alongside how their pots are performing against a range of sustainability criteria.
Maria Nazarova-Doyle, head of pension investments and responsible investments, said: “Find Your Impact will encourage workplace scheme members to engage more closely with their pension, by giving them greater transparency over where it is invested and let them see the impact these investments have on the planet and society, as well as showing their financial performance.
“By having this information at their fingertips, we hope it will encourage people to take an active interest in their pensions, how their savings are performing and where their money is invested."
She added: “The tool also has a ‘have your say” feature which will be used to collect the views of our members about what they want and expect from the companies we invest their money in. This will be taken into consideration as we shape our broader responsible investment and stewardship strategy.”
Scottish Widows has committed to reaching net zero across its £170bn investments portfolio by 2050 and halve its carbon footprint by 2030.
It will also invest billions of pounds in climate solutions, such as renewable energy, low carbon buildings, and energy efficient technologies, by 2025.
Other companies, including Aviva, Aegon and Smart Pension, have also committed to achieving net-zero carbon emissions in their funds by 2050.