Scottish Widows has announced a “reboot” of its £250 million Environmental Fund, with plans to exclude all fossil fuels and invest in green British businesses instead.
The fund, which is available to six million customers, will not invest in companies that are involved in the extraction, production, supply and transportation of fossil fuels or those that generate power from or own reserves of fossil fuels.
In addition, it excludes companies that receive nuclear energy, including nuclear uranium mining.
Scottish Widows intends to invest in companies that make a positive impact on the environment through their products and services and in environmental leaders who are “making a difference” with their progressive policies.
The latest announcement is claimed to be the widest fossil fuel exclusions of any pension provider in the UK, with the move supporting Scottish Widows’ target to achieve net zero emissions by 2050 across its entire portfolio of investments.
Maria Nazarova-Doyle, Head of Pension Investments at Scottish Widows said: “The launch of our refreshed Environmental Fund offers our customers an opportunity to engage in environmental impact investing, an approach that not only aims to achieve good financial returns but sets out to have a measurable and positive impact on the environment.
“Responsible investing enables investors to seize new opportunities and manage risk. By investing in this fund, customers can help address some of the global challenges we face in areas such as climate change, sustainable agriculture, pollution and renewable energy.”
One of the companies the relaunched fund will be backing is waste management firm Biffa.