London, 16 March 2020: Leading online pension provider, PensionBee has confirmed plans to launch a fossil fuel free fund in partnership with Legal & General.
The new fossil fuel free plan will launch later this year and follows a survey conducted by PensionBee which showed that over a third (34%) of customers in their responsible ‘Future World’ plan think that the time for engagement with oil companies is over. They want to completely exclude oil from their pensions, even if that means a potential reduction in the profitability of their pension, although many are convinced that oil production is a dying and long-term unprofitable business.
The decision to launch a fossil fuel free fund follows a public letter written to Legal & General from PensionBee’s Chief Executive, Romi Savova, last year, questioning the ongoing inclusion of Shell in their climate-conscious Future World fund.
The survey results show a growing divide between those who want to continue to engage with oil companies and those who no longer believe in the effectiveness of that engagement; oil production is actually increasing and proposed offsetting measures impossible to monitor. There is also a view that these stocks will become stranded assets.
Whilst PensionBee continues to advocate for the ‘engagement with consequences’ approach of its ‘Future World’ fund, it is clear that there is increasingly strong demand for pension products that give customers the choice to divest from oil.
PensionBee’s fossil fuel free plan will launch later this year in partnership with Legal & General.
Clare Reilly, Head of Corporate Development at PensionBee, commented: “Everyone should have control over where their money is invested. Our new fossil fuel free fund will finally offer consumers a practical way to completely exclude oil from their investments. We hope this is just the start of all savers using their investments to transform the world they live in - for the better of the planet, society and their retirement. We are proud to be the first provider to offer a fund of this type and look forward to its launch later this year”.