Under the hood of the Climate Plan

This article was last updated on 07/07/2026

As interest in sustainable investing grows, so do the options available to investors - including pension plans designed with the environment in mind. Along with our Shariah Plan, we introduced the Climate Plan in 2024. It tracks a Paris-aligned index that excludes fossil fuel producers and favours companies with lower carbon emissions intensity.

Read on to learn about the Climate Plan.

The Climate Plan at a glance

Objectives and investment focus

The Climate Plan is designed to follow a Paris-aligned decarbonisation pathway that aims to reduce carbon intensity over time. The plan aims to align with the goals of the Paris Agreement, which seeks to keep the rise in the global average temperature below 2°C, with an ambition to limit the increase to 1.5°C, above pre-industrial levels. It does this by tracking an index that targets a 10% average annual reduction in the carbon emissions intensity of the companies it holds, exceeding the EU minimum requirement of 7%. So, even if the global economy increases its carbon output over time, the Climate Plan would still seek to exceed the EU minimum standards for Paris-Aligned Benchmarks.

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Management style and fees

The Climate Plan's money manager is State Street Investment Management. The plan follows a passive, index-tracking approach that aims to align with the Paris Agreement. It uses a Paris-Aligned Benchmark (PAB) that guides its investment choices.

The plan's benchmark is the MSCI ACWI Climate Paris Aligned ex Fossil Fuels & BISR Custom PAB Index. This index aims to increase the weight of companies exposed to climate transition opportunities and reduce the weight of those exposed to climate transition risks. It's designed to align with the Paris Agreement's goal of limiting global temperature rise to below 2°C.

Holdings and fees

The plan invests in approximately 630 publicly listed companies around the world. It invests more in companies committed to reducing their carbon footprint, or the intensity of their carbon use, compared with its parent index MSCI ACWI, and less in those that are not.

The annual fee for the plan is 0.75%. We halve that fee on the portion of your pension balance over £100,000.

The Climate Plan is a way to invest your pension for a less carbon-intensive future, while you save for your own retirement.

Have a question? Get in touch!

Do you want to know more about your pension plan with PensionBee? You can check out our Plans page to learn how your money is invested in different assets and locations, or log in to your BeeHive to see your specific plan. You can always send comments and questions to our team via contact@pensionbee.com.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.