While nearly three-quarters (72 per cent) of U.K. employees say it’s important their employer offers a pension plan that’s invested according to environmental, social and governance factors, half (47 per cent) say they don’t know whether their pension is invested in this way, according to a new survey by Scottish Widows.
The survey, which polled 4,700 workers and roughly 2,000 employers, found when asked about the biggest issues facing society today, two-thirds (63 per cent) cited the cost of living, followed by climate change (44 per cent), plastic waste (37 per cent) and water pollution (33 per cent) closely followed as top concerns for employees.
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Notably, more than a quarter (29 per cent) of generation Z respondents cited social issues — including diversity, equity and inclusion — as one of the biggest societal challenges, compared to just 18 per cent of workers aged 55 and older.
Seven in 10 (70 per cent) employees said their employer’s social responsibility credentials or benefits were important in choosing their current role, a percentage that increases among younger workers (79 per cent). Two-thirds (64 per cent) of all employees said they expect their employer’s ESG commitments to be reflected in their pension portfolios.
However, six in 10 (61 per cent) said they don’t know how to switch from their default pension to an alternative investment option that may be better suited to meet their objectives.
Fewer than a quarter said they have concerns about whether responsibly invested pensions have comparable returns to traditional investing (23 per cent) or whether they cost more (21 per cent). One in four (25 per cent) said they don’t have enough information about responsible pension investments to understand their cost and benefits.
Read: 73% of OPB plan members want ESG considerations included in investment decisions: survey