Updated analysis of 12 largest UK providers, representing 44 million British pension pots, shows continued inaction

• Lethargy from household names, including Standard Life and Royal London, as overall scores stagnate while profits grow

• Updated assessment shows pension progress sorely lacking on climate and nature action with overall average score of 4.5/10 labelled as ‘inadequate’

• Failure includes continued investment in new fossil fuels, inadequate action to tackle deforestation, and weak stewardship

• Some progress seen, as Nest Pensions– the UK’s largest workplace pension - moves into first place, and Smart Pension and Now: Pensions take top spots

• Highest score across each theme would produce an overall score of 7.6/10 - sets a new public benchmark of what is possible if all pension funds stepped up their action

Make My Money Matter – the green pensions campaign co-founded by filmmaker and activist Richard Curtis – today publishes the annual update to its Climate Action Report, this year assessing the UK’s 12 biggest workplace pension providers* representing 44 million pension pots.

The report – developed in partnership with sustainability research provider Profundo - exposes the persistent failure of the UK pensions sector to address their role in financing the climate and nature crises. The campaign argues that this puts savers’ money, and their future, at serious risk.

While last year was the hottest in recorded history and the first to break the 1.5-degree limit set at the Paris Climate Agreement, the average score of the 12 remains ‘inadequate’ at only 4.5/10. There is lethargy amongst some household names where overall scores have stagnated, including Standard Life and Royal London.

On the crucial issues of fossil fuel phaseout, and deforestation & land use, the average was - incredibly - below 3/10. This is despite research showing the industry’s huge exposure to deforestation – standing at a staggering £300 billion in companies linked to deforestation – and to fossil fuels – averaging £3,000 per pension holder.

On fossil fuels the pension industry continues to invest in oil & gas companies that are driving global heating with new fossil fuels. 7 of the 12 pension companies (Aegon, Aviva, Fidelity International, Legal & General, Royal London, Standard Life, and Scottish Widows) told Make My Money Matter that they invest in Exxon. Exxon has recently set a 5-year plan to boost oil and gas output by 18%** - even though the world agreed at COP28 to transition away from fossil fuels. This is despite commitments from all 7 providers to half emissions by 2030.

Shareholder action on fossil fuel companies is weak too - Aviva and Legal & General both voted in support of management, including their pay package, 44 out of 45 times at the Shell and BP AGMs in 2024.

However, a number of providers have stepped up since last year’s report such as Smart Pension and Now: Pensions who have moved up in the ranking, and Nest Pensions is now the number one UK defined contribution workplace pension fund for action on climate. Also, Aegon has made improvements, and progress at The Peoples’ Pension means no providers are scored overall red (‘poor’) this year.

Positively, average scores have risen across almost all themes compared to last year, and 4 of the 12 providers now score 5 or above (‘adequate’) compared to 3 last year.

The most positive finding from the 2025 ranking is that taking the highest score across each theme would produce an overall score of 7.6/10 for an ‘ideal’ pension fund, setting a new public benchmark of what is possible if all pension funds stepped up and learned from their peers.

The campaign group is calling on savers and employers to challenge their pension provider on their climate performance and if not satisfied, take financial advice and move to a greener option.

Tony Burdon – CEO Make My Money Matter said:

“We are seeing the ferocity of the climate and nature emergency increase year on year – and it is set to worsen without urgent action. But the UK pensions sector is still failing to stop financing this crisis and is putting the retirement of British savers at serious risk.

Whilst it is good to see that some providers like Nest – now ranked at number one - along with Now and Smart, have responded by improving their policies on climate and nature, others like Standard Life and Royal London continue to fail their savers.

Averting the worst of an impending climate and nature catastrophe is humanity’s biggest collective challenge of our time. Our pension industry, our high street banks, government, and regulators all now need to step up and treat it as such.”

Jan Willem van Gelder – Director of Profundo said:

”Progress shown by UK pension providers in addressing the climate crisis is slow and lacks behind the most responsible of their peers in continental Europe.

Especially in dealing with the fossil fuel sector, most UK pension providers are not taking the steps which are required. While the International Energy Agency already in 2021 demonstrated that no new oil and gas fields should be developed anywhere in the world, the oil & gas sector is consciously denying the urgency of the climate threat by investing billions in new developments.

This destructive behaviour should not be funded by British pension pots, the pension providers need to follow the lead of European pension funds by divesting from the companies destroying our climate.”

ENDS

Contact:

Huw Davies – Senior Finance Adviser

huw@makemymoneymatter.co.uk

Notes:

*Based on combined active and deferred members – Source: Master Trust and GPP Defaults Report, Corporate Adviser – April 2024

**Source: Exxon sets 5-year plan to boost oil and gas output by 18% | Reuters

Research methodology

The research and analysis for this project was conducted between September 2024 and January 2025. The research is based on information that pension providers have publicly disclosed on their website as of 31 October 2024. Providers were advised in advance of the research and given the opportunity to respond to their draft assessments. The research methodology enables measurement of the extent to which each pension provider has effective objectives, policies, and instruments in place to respond to climate change. The assessment framework facilitates comparison between providers.

Like last year, Profundo took into account the company’s wider policies, but policies must be relevant to the pension provider’s default fund, so that we are confident it applies to most people. A stricter approach to this may explain some (downward) score changes.

The assessment framework remains the same as last year’s and comprises seven themes that are important for addressing climate change. These themes were chosen as they represent necessary and important priority areas which give a good indication of climate action.

Each of the seven themes was further broken down into assessment elements, with 24 elements in total. The policy publications of each provider were scored against all 24 elements.

The scores were then added up for each provider per theme and for all themes together. To combine the thematic scores to a total score for each pension provider, weighting factors per theme are used. For the ease of interpretation the scores were consequently normalized on a scale from 0 to 10.

For complete 2025 results and a detailed methodology, see the full report on our website (from Wed 12 Feb).

Providers analysed

The analysis focussed on the UK’s 12 largest DC workplace pension providers – by total members - as per Corporate Adviser, April 2024. This list includes: Aegon, Aviva, Cushon, Fidelity International, Legal & General, Nest Pensions, Now: Pensions, Royal London, Scottish Widows, Smart Pension, Standard Life, The People’s Pension

About Make My Money Matter

Make My Money Matter is a people-powered campaign founded by filmmaker and activist Richard Curtis. The campaign aims to give savers more voice and choice over their money so that their pension, investments, and bank align with their values and build a better world.

Make My Money Matter calls on UK Pension Schemes to

1. Commit to robust net zero targets and report regularly on their progress

2. Tackle deforestation in their investments

3. Set red lines on fossil fuel expansion amongst investee and financed companies

4. Significantly ramp up investments into climate solutions

Make My Money Matter calls on the Big Five UK high street banks to take the following steps to end financing for fossil fuel expansion

1. Immediately stop providing money to new clients who are involved in expanding fossil fuel operations

2. End the flow of new money to existing fossil fuel clients who - by end of 2025 - haven’t ended expansion of fossil fuel operations and haven’t published credible plans aligned to a 1.5 degree global warming limit

3. Set out a clear timeline for cutting ties with existing clients that continue to expand fossil fuel operations

Make My Money Matter calls on government to:

1. Deliver on its manifesto promise and set a mandatory requirement for credible 1.5C transition plans from large companies, and financial institutions. These must take account of real-world impact, which means specifying that financing fossil fuel expansion and deforestation is not compatible with a 1.5C plan.

2. Ensure, as part of its pension review which is helping to drive consolidation, that smaller climate leaders are not consolidated into larger climate laggards.

3. Do more to unlock investments in climate solutions,

4. Provide immediate guidance to trustees on fiduciary duty to clarify that they can and should consider the impact of investments on society and the environment - on the world members will retire into. This would provide legal cover for trustees to make appropriate investment decisions in members’ best interests in a world impacted by the climate crisis.

Find out more at www.makemymoneymatter.co.uk

About Profundo

Profundo is an independent research organisation with a clear mission to use profound and fact-based research and advice to make a practical contribution to a sustainable world and social justice.

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