Should I invest my pension ethically?

Ethical investment opportunities for your pension savings

Online searches for ethical and green investment for pension plans has increased. Investors are becoming focussed on their social responsibilities and carbon footprint.

Ethical investment opportunities are becoming increasingly popular. Ethical options are available under all modern private pensions. Historically, ethical funds have underperformed the market. Of course, these funds aren’t out to exploit the arms trade or mistreat third-world workers, meaning profits aren’t always comparable with unrestricted investment funds.

In recent years returns in ethical investments have generally improved. Modern-day ethical funds are now able to benefit from recent global developments in ethical practices. The reduction in plastic products and increase in paper products have helped. As has the West’s drive for better working conditions for the entire supply chain.

Ethical Fund Management

Ethical investment funds are managed to a strict mandate. This ensures investment opportunities are positively or negatively screened to fit.

Investors must review the ethical mandate of an investment to find out if it suits them.

Under positive screening, fund managers seek out investment opportunities for promotion of ethical practices. Negative screening processes mean that certain trades are screened-out. This is commonly exclusions over arms trading, tobacco or pharmaceutical testing.

Where can I find out more about investing ethically?

Do general research around investment opportunities and always ensure you take a mixed-asset strategy. While investing a proportion of your portfolio in ethical opportunities, you must maintain a diverse approach.

Ask your adviser about the ethical investment range available in your pension plan. Your adviser may conduct wider research for you if needed, to find a pension ‘wrapper’ allowing investment into the best ethical funds. An ‘open architecture’ pension such as a Self Invested Personal Pension (SIPP), or Qualifying Recognised Overseas Pension Scheme (QROPS) would offer a range of options.

Pension News

basic spotlight stakeholder pension
UK Pension Planning

What is a stakeholder pension?

Stakeholder pensions: simple, low-cost… basic? A stakeholder pension plan is a basic, low cost pension arrangement. It is a form of defined contribution plan, and

Read More »
QROPS questions
Retiring Overseas

10 Important QROPS Questions

10 Questions to ask before you transfer to a QROPS Considering a QROPS transfer? Ask your adviser these important questions. Don’t be shy in grilling

Read More »
retirement goals
Retirement Planning

Top 10 Retirement Goals

Why are the first 5 years of retirement the most expensive? It’s important to consider your retirement goals and what you will be wanting to

Read More »

Speak to a Professional

We introduce clients to regulated, professional and qualified advisers across the UK and internationally.

Our panel of adviser firms must undertake a comprehensive due diligence process. We only refer to firms with locally-appropriate regulation and insurance.

Ask us anything

didn't find what you are looking for?

search Our Site

About This Site

Whilst every care has been taken in the preparation of our website and publications, they are intended as a guide only. Readers are advised to seek professional regulated financial and tax advice before making any changes to their planning or investments. Our publications, including website and guides do not offer investment or pension advice and nothing in them should be construed as investment or financial advice. Our publications, including guides and website are not, and should not be seen as, a recommendation to use any particular investment or planning strategy.

You must carry out your own research before making any investment decision or change to your planning. The information published has been obtained from sources that we believe to be accurate. Although reasonable care has been taken, we cannot guarantee the accuracy or completeness of any information published. Articles and opinions published may be wrong and may change at any time. You must always carry out your own independent research and verify information and data you collect before making any financial decisions or planning changes.

Financial and pension planning is complex, and must be tailored to the individual client’s needs, objectives and circumstances. Teach Learn Resources Ltd do are not regulated by the Financial Conduct Authority and do not offer financial or tax advice. Our only business is to act as a professional introducer to regulated IFA firms worldwide. Contact us for more details about our panel of approved adviser firms and the regulation held in your jurisdiction.

Please see our Privacy & Terms for more information about the company, protection of your data and terms of use.

All content on this website and associated publications have been written by us and is the intellectual property of Teach Learn Resources Ltd. We take plagiarism seriously; our lawyers are watching. is a trading style of Teach Learn Resources Limited. Teach Learn Resources Limited is registered in England and Wales company number 13349666. Registered Office 591 London Road, Cheam, Sutton, England SM3 9AG.

All rights Reserved