Three Pension Investments That Are Unknowingly Damaging The Environment

It’s extremely common for people to put some of their earnings into a workplace pension scheme. This money will be invested with the goal of it increasing over time. So, when you get to the age of retirement, you will have a nice nest egg to enjoy in your later years.

This sounds great; however, many don’t consider their pensions’ effect on the environment. Investments in fossil fuels and plastic manufacturing are well documented for their impact, but some will be harder to spot. To identify where your money is being invested, you will have to review your pension provider’s policies or request information from the trustees.

So, Nils Hoogervorst, Environmental Expert at GreenMatch, has revealed three pension investments that are unknowingly damaging the environment.

1. Deforestation-linked companies

There are many industries that have strong links to deforestation. These include palm oil production, soy production and large-scale cattle ranching. Deforestation is estimated to cause between 12-20% of the world's global emissions. So, if you want to be more environmentally conscious, ensure that what you’re putting your money into doesn’t affect this. In 2025, around 20% of the Amazon Rainforest has been deforested, so it’s crucial that we all do our bit to prevent this from increasing.

2. Shipping companies

Shipping companies will use planes, ships and vans to transport cargo across the globe. This requires a lot of petrol and diesel, which emits large amounts of carbon dioxide into our atmosphere. Some companies are more environmentally friendly than others, so do your research about what they have in place to reduce their carbon footprint. The shipping industry is estimated to be responsible for 2.4% of global total emissions.

3. Aviation companies

Another common pension investment is in aviation companies. Air travel and aircraft manufacturing have had devastating effects on the environment. It is said to cause 2.5% of global carbon emissions. This way of travel continues to rely on fossil fuels until a sustainable alternative can be discovered.

Nils Hoogervorst, Environment Expert at GreenMatch:

‘’We all want to make sure that we have a good pension for when we retire. However, it’s important that we are environmentally conscious when doing so.

Ensure that you have done your research when it comes to choosing your pension. With the increased investment in green technology, there are plenty of more ethical choices for you to make.’’