Saving the planet one pension at a time.
Published 5th February 2021 by Chris Dell
A revolution driven by two structural forces has quietly taken place under our noses.
First, there is a new army of investors. Since the introduction of auto-enrolment in 2012 the number of active members of private sector occupational schemes increased to 9.9 million by 2018. According to the Office for National Statistics, this reached a low of 2.7 million in 2011.
The paternalism of the auto-enrolment means most do not view themselves as investors but they are gradually waking up to the power of pension contributions. As most millennials and those from generation Z expect transparency from any product they buy and to be able to engage with the corporate entity behind the product, they will increasingly demand this from asset managers.
Second, people are becoming tired of government inaction on climate change and taking matters into their own hands with movements like Extinction Rebellion and activist Greta Thunberg gaining international recognition. Social media is powering this trend.
Increasingly restless planet’s residents want to move beyond recycling and find new avenues to express their opinions and force positive change so we can take immediate action to help save our planet.
Responsible investing will play an important role in these trends.
Universities and charities already feel the pressure to take these considerations into account when making their investment decisions and in how they communicate. While the fund management is taking advantage by incorporating responsible investing characteristics into their funds, they are not fully grasping the nettle.
This is a tremendous opportunity for asset managers and one which should be embraced with vigour.
The challenge is to finally bring to life what asset managers do and why they do it in relatable ways for their customers, new and old, retail and institutional.
Decisions such as to what to invest in, how to encourage leaders of companies to change to have responsible environmental and social policies are topics everyone can understand and get involved with. It allows us to make more informed choices of who we choose to invest our money with.
A customer is much more likely to be engaged by marketing communications which discuss the manager’s particular approach to responsible investing than technical talk about benchmark returns to an index. And pension scheme members want to know how their contributions are being used.
Money talks, and our investments, are new tools in the fight to save our planet
Now is the time for asset managers to consider talking to and involving their customers in new ways around topics which can stimulate thought provoking conversation and allow us to build an asset management brand people can genuinely trust.
At the time when the industry needs to be talking more, why not talk to us? Email firstname.lastname@example.org