The Climate Plan

Make your pension part of the climate transition. Track a Paris-aligned index that excludes fossil fuel producers and reduces exposure
to carbon-intensive companies.

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Important: With investments, your capital is at risk. Pensions can go down in value as well as up, so you could get back less than you invest.

What is the Climate Plan?

A plan focused on climate transition
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The Climate Plan is for savers who wish to reduce their exposure to transition and physical climate risks and pursue opportunities arising from the transition to a lower-carbon economy, while aligning with the Paris Agreement requirements.

‍A plan aligned with the Paris Agreement
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‍The Climate Plan aims to align with the Paris Agreement’s climate goals. The Paris Agreement is an international treaty with a goal to keep the rise in the global average temperature to below 2°C with an ambition to limit the increase to 1.5°C above pre-industrial levels.

Watch Ben Leale-Green, Portfolio Strategist from State Street, explain what the Climate Plan is.

How the Climate Plan works

Excludes fossil fuels
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The Climate Plan excludes companies with fossil fuel reserves, but goes further. It also excludes those with any ties to direct fossil fuel reserves and those heavily reliant on them for operations, such as utility companies with fossil fuel-based power generation.

Follows a Paris-aligned decarbonisation pathway

The plan follows a Paris-Aligned Benchmark (PAB), with a decarbonisation pathway in line with the 2015 Paris Agreement, which aims to reduce carbon intensity over time. For the Climate Plan that goal is to exceed the EU minimum standards for a Paris-Aligned Benchmark.

Why choose the Climate Plan?

The Climate Plan tracks a Paris-aligned index that excludes fossil fuel producers and favours companies with lower carbon emissions intensity, as you save for retirement. Here are some of the key features of the Climate Plan.

Low-carbon future

Increases investment in companies which are exposed to climate transition opportunities and reduces investment in companies which are exposed to climate transition risks. It’s a way to invest your pension for a less carbon-intensive future.

Long-term opportunity

Invests more in companies prepared for the transition to a low-carbon economy, which may offer opportunities that come with reduced exposure to transition and physical risks. By taking advantage of new green incentives and adopting sustainable practices, these companies could reduce their operational costs and boost profitability over time.

Annual decarbonisation

Includes a decarbonisation pathway, which means even if the global economy increases its carbon output, the Climate Plan would still seek to exceed EU minimum standards for Paris Aligned Benchmarks. The plan does this by investing more in companies reducing their carbon footprint or the intensity of carbon use over time, compared to its parent index MSCI ACWI, and less in those that are not.

Invest for your retirement

The Climate Plan aims to generate long-term financial returns on your investment. So, you can use your pension to support companies committed to reducing their carbon emissions as you save for your own future.

Beyond reducing carbon emissions

The Climate Plan also excludes investing in other industries that harm the environment and society:

controversial weapons;

nuclear weapons;

civilian firearms;

conventional weapons;

adult entertainment;

palm oil;

alcohol;

gambling;

for-profit prisons;

tobacco;

recreational cannabis;

United National Global Compact non-compliance; and

companies misaligned with UN Sustainable Development Goals (SDGs) such as SDG 6 to provide clean water and sanitation and SDG 7 to develop affordable and clean energy.

See the FAQ “What other industries and sectors are excluded from the Climate Plan?” for more details.

Get to know the Climate Plan

3 reasons to think about where your pension’s invested

For most of us, a pension may be the biggest investment we hold in our lifetimes. And yet, so many of us have little engagement with that money. Here are three reasons to think about where your pension's invested today.

By Lori Campbell

13 Jan 2025. 4 min read

Sustainable Investing

How we can use our pensions to drive positive change whilst saving for retirement

If you have a pension, you're already an investor, and that gives you more power than you might think.

By Philly Ponniah

3 Feb 2025. 3 min read

Sustainable Investing

3 reasons a sustainable pension can make financial sense

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Sustainable Investing

FAQs

The Climate Plan tracks a custom MSCI index that uses the MSCI All Country World Index (ACWI) as its starting point.

As of May 2026, Information Technology and Communication Services companies make up more than 40% of the index the Climate Plan tracks, so they feature prominently in any plan that follows this approach.

The Climate Plan is not investing purely for positive environmental impact nor actively investing solely in green revenues.

This means every company the Climate Plan invests in is assessed against its own emissions trajectory over time and compared to others across all sectors, rather than against an absolute idea of what a 'green' company looks like in isolation.

This is why technology companies, despite their size, and the energy demands of AI and data centres, are included prominently in the plan. The seven largest technology companies (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla) account for 1.16% of total global emissions combined, even though they represent approximately 21% of MSCI ACWI by market capitalisation as of May 2026.

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Company name	Scope 1, 2 and 3 Emissions		Green Revenues
Company name	Total (Mt CO₂-eq)	% of Global GHG (2024)	Green Revenues
NVIDIA Corporation	60.1	0.11%	89.72
Microsoft Corporation	53.0	0.10%	20.69
Apple Inc.	172.2	0.32%	0.00
Alphabet Inc.	47.5	0.09%	3.85
Amazon.com, Inc.	204.2	0.38%	2.25
Meta Platforms, Inc.	18.9	0.03%	0.00
Tesla, Inc.	72.3	0.13%	99.99

NVIDIA Corporation

Scope 1, 2 & 3 Emissions - Total (Mt CO₂-eq)60.1

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.11%

Green Revenues89.72

Microsoft Corporation

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)53.0

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.10%

Green Revenues20.69

Apple Inc.

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)172.2

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.32%

Green Revenues0.00

Alphabet Inc.

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)47.5

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.09%

Green Revenues3.85

Amazon.com, Inc.

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)204.2

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.38%

Green Revenues2.25

Meta Platforms, Inc.

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)18.9

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.03%

Green Revenues0.00

Tesla, Inc.

Scope 1, 2 & 3 Emissions - (Mt CO₂-eq)72.3

Scope 1, 2 & 3 Emissions - % of Global GHG (2024)0.13%

Green Revenues99.99

Source: State Street IM, MSCI, as of 03 Jun, 2026. For illustration only. According to Our World in Data, Global GHG Emissions in 2024 were 54.43 billion tons of CO2-eq.

Because these companies have relatively low emissions compared to their economic weight, the index currently favours them over heavier-emitting sectors.

The emissions profile of companies in this sector is evolving in line with their increasing use of AI and data centres. The plan’s index rebalances semi-annually. This is a periodic adjustment of the holdings and weightings of the plan, in accordance with the index methodology. As a result, any companies whose emissions have risen sharply may see their overall weighting reduced or, where there are sudden and significant changes to their business or operating models, could be removed entirely under the exclusionary screening policy.

The Climate Plan has a robust approach to exclusionary screens. In fact, it excludes industries that are harmful to the environment and society, such as:

Controversial Weapons
‍All companies involved in the production of whole weapon systems, delivery platforms or components of cluster munitions; production of whole weapon systems or components of landmines and biological or chemical weapons; production of depleted uranium weapons, blinding laser weapons, incendiary weapons, or weapons with non-detectable fragments; or is involved indirectly through ownership ties to companies involved in such products. Nuclear weapons are not considered for this screen.

‍Nuclear Weapons
‍All companies involved in the production of nuclear weapons, exclusive and dual-use delivery platforms capable of delivering such products, intended and dual-use components of such products, services provided for such products, or are involved indirectly through ownership ties to companies involved in such products or services.

‍Civilian Firearms
‍I. All companies that produce firearms and small arms ammunition for civilian markets.
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II. All companies deriving 5% or more revenue from the production, wholesale or retail of firearms and ammunition intended for civilian use in their most recently completed fiscal year.
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III. All companies deriving 5% or more revenue from the wholesale or retail distribution of firearms or small-arms ammunition intended for civilian use in their most recently completed fiscal year.

‍Conventional Weapons
‍All companies deriving 5% or more revenue from the production of conventional weapons, or components, support systems, and services for such products in their most recently completed fiscal year.

‍Aggregate Weapons
‍All companies deriving 10% or more revenue from the production of conventional weapons, components for such products or support systems and services for such products; production of biological or chemical weapons, components for such products; production of nuclear weapons, exclusive and dual-use delivery platform capable to deliver such products, intended and dual-use components of such products, services provided for such products; and the production of blinding laser, incendiary or non-detectable fragments weapons in their most recently completed fiscal year.

‍UNGC violators
‍Companies deemed by the index provider as non-compliant with certain controversies related to one or more principles of the United Nations Global Compact (UNGC).

‍Tobacco
‍Companies deemed by the index provider as being involved in or having any revenue generated from the tobacco industry, including but not limited to, those classified under ICB subsectors as tobacco and cannabis producers.
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‍Thermal coal
I. All companies deriving any revenue (either reported or estimated) from the mining of thermal coal (including lignite, bituminous, anthracite and steam coal) and its sale to external parties. It does not cover: revenue from metallurgical coal; coal mined for internal power generation (e.g. in the case of vertically integrated power producers); intra-company sales of mined thermal coal; and revenue from coal trading.

II. All companies deriving any revenue (either reported or estimated) from thermal coal-based power generation.

Unsustainable palm oil use
All companies meeting both of the following conditions:

I. Companies deriving 5% or more recent-year revenue from the production of Palm Oil or companies deriving 5% or more recent-year revenue from the distribution of Palm Oil.
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II. Companies having less than 50% palm oil holdings / estates that are certified by the Roundtable on Sustainable Palm Oil.

Gambling
I. All companies deriving 5% or more revenue from products or support services fundamental to gambling operations in their most recently completed fiscal year.
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II. All companies deriving 5% or more revenue from gambling operations, including online or mobile gambling, in their most recently completed fiscal year.

III. All companies deriving 15% or more revenue from gambling operations, including online or mobile gambling, and supporting activities in their most recently completed fiscal year.

Environmental controversies
‍Environmental controversies are defined by MSCI - a global provider of equity, fixed income, real estate indices, multi-asset portfolio analysis tools, ESG and climate products. The MSCI ESG Controversies universe is designed to provide timely and consistent assessments of companies’ involvement in ESG-related controversies and incidents.

The exclusion of environmental controversies from the Climate Plan means that the plan won't invest in companies involved in ESG controversies that are classified as ‘Red Flags’ (MSCI ESG Controversy Score of 0). A Red Flag indicates an ongoing ‘Very Severe’ ESG controversy. MSCI assesses the severity of individual controversies, with ‘Very Severe’ indicating a large negative impact of a company on society or the environment.

Ready to invest in the Climate Plan?

If you’re ready to use your pension to invest in companies taking action on their carbon emissions, sign up below.

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The Climate Plan

What is the Climate Plan?

How the Climate Plan works

Excludes fossil fuels‍

Follows a Paris-aligned decarbonisation pathway

Why choose the Climate Plan?

Low-carbon future

Long-term opportunity

Annual decarbonisation

Invest for your retirement

Beyond reducing carbon emissions

Get to know the Climate Plan

3 reasons to think about where your pension’s invested

How we can use our pensions to drive positive change whilst saving for retirement

3 reasons a sustainable pension can make financial sense

FAQs

Ready to invest in the Climate Plan?

Excludes fossil fuels
‍