Friday 24 June 2022

New UK trial to ‘nudge’ people into making greener pension choices

New UK trial to ‘nudge’ people into making greener pension choices

A new trial to encourage people to learn more about making greener pension choices in the UK has been launched.

Dubbed the 'Green Nudge', the trial will test the impact of behavioural nudges and messages on increasing saver engagement with the sustainability of pension investments and how it could translate into greener pension decision-making.

The Department for Work and Pensions (DWP) is working in partnership with the Behavioural Insights Team (BIT), Aviva, Smart Pension and Hargreaves Lansdown to deliver the “nudges” to more than 160,000 pension scheme members to encourage them to invest in more sustainable pensions or learn more about the sustainability of their pension schemes.

Minister for Pensions Guy Opperman said: “Through the productive long term investment power of pensions, we can help the UK get to net zero and deliver both investment returns and a sustainable planet.

“These trials will give us vital insight into how interventions can boost saver engagement and encourage greener choices. I look forward to seeing the results.”

In 2021, the UK became the first country to legally require pension trustees to assess and publish the financial risks from climate change.

Earlier this week, the government also announced pension schemes will be required to measure and publish how their investments support the Paris climate change goals from October this year.

Emma Douglas, Director of Workplace Savings & Retirement at Aviva added: “We are pleased to partner with the Department for Work and Pensions (DWP) on this trial, particularly because it focuses on two incredibly important issues. Increasing engagement with pension saving is a top priority for our clients and for Aviva and this trial will consider whether customer messaging around climate change can prompt people to engage more.

“Of equal importance is educating savers about the role their pension scheme investments can have in achieving net zero ambitions and this trial will do that too. It is a real win-win opportunity for providers, consumers and ultimately, climate change.”

Written by

Bruna Pinhoni

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