Investing with purpose
Our investment strategies aim to achieve positive long-term outcomes for our members and the world around them.
Sustainable default growth fund
Net zero by 2040
At Smart Pension, we’re aiming for our listed assets in our default growth fund, the Smart Sustainable Growth Fund, to be net zero by 2040.
We’ve set interim net-zero targets and are acting to reduce biodiversity loss by working with managers and investee companies to improve practices, including preventing commodity-driven deforestation.
Split voting in our listed equities and active engagement are key tools here, helping to push the companies we invest in toward higher standards.
Investing for long-term growth and real-world impact
We’re targeting a 15% allocation of our default fund into private markets, helping support businesses and large-scale projects designed for long-term sustainable growth.
Stronger long-term outcomes
Private market investments can create opportunities for greater and more sustainable long-term returns through projects built to deliver value over time.
Beyond financial returns
Our investments aim to improve real-world outcomes for members, from supporting critical infrastructure to helping reduce everyday living costs.
Greater investment choice
We continue to expand investment choice for members, including options such as our Halal Investment Strategy.
Infrastructure with practical impact
Some private market investments support infrastructure projects designed to deliver long-term practical benefits. For example, ground source heat pumps replace imported gas heating with locally generated renewable heat and can help reduce household energy bills through greater energy efficiency.
Supporting the transition to a lower carbon economy
Our default investment strategy invests in projects to deliver strong financial returns for members while providing solutions to the world’s challenges. This includes projects internationally, not just in the UK. The result is better integration of renewable energy and reduced reliance on gas, where investments can benefit from long-term structural growth in the energy system.
We partner with several industry groups
Latest news
FAQs
ESG is an industry term that stands for Environmental, Social and Governance. In all our investment options and offered strategies, we consider ESG issues and how the risks associated with them might affect the returns of investments.
This means that, when choosing funds, we think about factors including environmental impacts, social impacts (issues which affect the fair treatment of people) and governance (company business practices).
We invest our members' pension with the aim of making a positive difference to society and our planet.
Read about our sustainability approach including our commitment to net zero, how we invest, and our impact investing.
Alternatively, you can watch our Director of Investment Proposition, James Lawrence, explain our approach to sustainable investing.
In the Smart Sustainable Growth Fund, where the majority of our members are invested, we are targeting a net zero date of 2040. This means we want to reduce our emissions in a truly impactful way, to align our investments with a limit of 1.5°C rise in global temperature. To find out more about our plans, see our net zero paper.
Impact investing relates to investments that are intended to have a positive, measurable, environmental and/or social impact as well as a financial return. An example of this would be investing in businesses that benefit the local community such as renewable energy, agriculture and research.
Impact investing not only delivers the required financial returns but also achieves meaningful, intentional and measurable benefits for people and the planet. Watch our What is impact investing? video to understand more.
The majority of our funds take ESG considerations into account, aiming to reduce negative harm on people and our planet. Ethical investing is guided by personal beliefs and members may differ in what they consider to be right or wrong. We offer an Ethical and Climate fund, which can be self-selected, that has stricter exclusions on its investments. We also offer a Sharia Fund where exclusions are applied to meet Islamic principles.
