News articles
Why should pension schemes be thinking beyond ESG?
How pension schemes can achieve more, by thinking beyond traditional ESG
Investing to improve biodiversity
What do you think of when you hear the word ‘biodiversity’? It’s the variety of the different forms of life on Earth, and it underpins everything we need, such as food, clean water – that's why we invest in a biodiversity fund
How Smart Pension invest to improve biodiversity
We believe that biodiversity loss and climate change are intimately linked and these two global challenges must be tackled together. Watch our Investing to improve biodiversity video to learn more on why it is so important.
What is biodiversity?
Biodiversity is the different kinds of life you’ll find in one area – animals, plants, fungi and microorganisms that make up the natural world around us. In today’s world there is increasing pressure on the planet causing loss of biodiversity. Without biodiversity there are many negative impacts on both people and our planet, like areas without natural defences, oceans that are intensively farmed and forests destroyed for agriculture causing loss of habitat.
It’s never been a more important time to talk about biodiversity
The human and economic impacts of biodiversity loss are now becoming a cost for companies and they are starting to measure them as a financial expense.
Secondly, trustees, investors and members are becoming more aware of the positive impact their money can make on people and our planet. Responsible investing is the future for the industry and investors alike.
By investing in a biodiversity equity impact strategy we are allowing more scope to make sure members' investments generate attractive financial returns, at an appropriate level of risk, while still positively impacting the planet and humanity.
”We want to help members secure not just long-term financial growth but also a safer, healthier world in which they can enjoy retirement. Our default growth strategy, used by the majority of our members, now invests in the AXA Investment Managers Biodiversity fund. This fund plays a key role in achieving our 2040 net zero target.”*
Paul Bucksey, Chief Investment Officer at Smart Pension
*The AXA WF ACT Biodiversity fund is not a targeted net zero strategy, but the strategy is aligned with AXA Group’s commitment to become a net zero business by 2050.'
The impact on climate change
We are committed to delivering a carbon neutral (or ‘net zero’) default growth fund by 2040 – 10 years earlier than the Paris Agreement goal and most other pension schemes, and we believe investments in biodiversity will play a key role.
As people are living through climate change now, we have seen heightened media coverage and an increased focus from governments and investors globally on the issue, and its financial risk. We believe that biodiversity loss and climate change are intimately linked – and these two global challenges must be tackled together. Not only is climate change a main driver of biodiversity loss but improving biodiversity can help our planet capture and store carbon.
Biodiversity loss is as serious a threat as climate change to our planet and our members’ investments, and, in our view, should be a key consideration when allocating to impact investments.
AXA Investment Managers believe Smart Pension has lead the way on its approach to sustainability over recent years
Rachel Basarab-Horwarth, Global Head of Pensions at AXA IM, commented:
“At AXA IM, we believe Smart Pension is a perfect partner for our biodiversity strategy, as it has stood as an example to others in its approach to sustainability over recent years. From a corporate perspective the company has an ethos that aligns with AXA IM’s stated aims of actively investing for the long-term to help our clients, our people and the world to prosper. The strategy focuses on four key areas we have identified to help prevent biodiversity loss: sustainable materials, land and animal preservation, water ecosystems, and recycling and recirculation.”
Learn about sustainable investing
Learn how saving for retirement can help tackle climate change. Discover what ESG is and more.
Explore investment options
We offer a range of investment choices for everyone. We aim to deliver strong returns for our members whilst also tackling climate change and making a positive difference to society and our planet.