People's Pension to allocate £15bn into climate aware investment strategies

70% of default accumulations will be aligned to Paris Agreement goal of 1.5 °C by 2030

Jasmine Urquhart
clock • 1 min read
Dan Mikulskis: The changes will mean TPP is now "one of the greenest master trusts in the UK"
Image:

Dan Mikulskis: The changes will mean TPP is now "one of the greenest master trusts in the UK"

The People’s Pension has announced it will allocate £15bn of its assets under management (AUM) into climate aware investment strategies.

The £25bn master trust, part of the People's Partnership, said the change will mean 70% of assets in the default global investments fund in the accumulation stage will be Paris-aligned to the goal of limiting temperature increases to 1.5°C by 2030.

The pension provider said its new strategy, which will mean divestment from companies that produce thermal coal, will reduce the carbon footprint of the majority of its 6.5m members (those within the default accumulation strategy) by 30%.

Initially, the strategy will reduce emissions by 30% in line with the EU's climate transition benchmark, and then by a further 7% each year to reach net zero by 2050.

The provider said its strategy aims to "manage the long-term risks" from climate change that may affect members outcomes, which "aren't currently being priced by the market".

People's Partnership chief investment officer Dan Mikulskis said the changes will mean the provider is now "one of the greenest master trusts in the UK" - highlighting the importance of asset owners with "size and influence" and using this to allocate members' savings in a responsible way, and to engage with investee companies.

"Key to our investment philosophy is conviction in what we do - if we really believe in something we want to make it core to our members' retirement savings, rather than a tick to a box, and that's what we've done here."

People's Pension Trustee chair Mark Condron said the change was a "significant moment" for the provider and its members, adding they can be "confident their savings are working towards achieving net zero targets and not against it".

More on Defined Contribution

Reports: NatWest in talks to sell workplace pensions provider Cushon

Reports: NatWest in talks to sell workplace pensions provider Cushon

Sky News says the high street bank is looking to refocus on ‘core strategic priorities’

Professional Pensions
clock 22 September 2025 • 2 min read
LifeSight hits £1bn in drawdown assets

LifeSight hits £1bn in drawdown assets

Growing numbers of members choosing to stay with master trust as Gen DC start to retire

Jonathan Stapleton
clock 16 September 2025 • 1 min read
Most DC members will be 'better off' in future, SPP says

Most DC members will be 'better off' in future, SPP says

Polling finds one quarter think members will be better off in five years

Jasmine Urquhart
clock 05 September 2025 • 1 min read
Trustpilot