How to Find the Carbon Footprint of Your Pension

When you pay into a pension, your money doesn’t just sit in a savings account.

Instead, it is put into a big investment pot with lots of other people’s pension money. Your pension provider then invests that money to try to make it grow before you retire. They might invest in lots of things, Stocks and shares, government bonds, commodities such as gold or gas and even into properties.

Your pension might not feel like part of your carbon footprint, but because it is invested in companies, industries and funds around the world this can also include also fossil fuels, mining, aviation and other high-carbon sectors.

Many UK pension providers now publish climate information about their funds, including their “carbon footprint” and whether they have net zero targets. Large pension schemes and many regulated pension providers are increasingly required to report climate-related information, although the information can still be hard to understand.

The good news? Ensuring your pension is invested sustainably could have 21 times more impact on reducing your carbon footprint than giving up flying, going vegetarian or switching energy provider combined!

What does carbon footprint mean for a pension?

A pension’s carbon footprint is usually an estimate of the emissions linked to the companies or assets your pension invests in.

For example, if your pension invests in an energy company, some of that company’s emissions may be counted as part of your pension fund’s “financed emissions”.

If your pension is invested in a company that produces fossil fuels this will mean more emissions are linked to your pension than if it was invested in sustainable energy production companies.

If you want to find out your pension’s carbon footprint, and find ways to make it greener, here is a simple step-by-step guide.

Important point: Net Zero Heroes is not a financial adviser. This article is for general information only and should not be treated as financial advice. Before changing your pension investments, make sure you understand the fees, risks and possible impact on your future retirement income. If you are unsure, speak to a regulated financial adviser.

Step 1: Look up your pension provider’s ranking

MakeMyMoneyMatter.co.uk (Which uses data valid to 2025) has ranked the UK’s largest pension providers based on their environmental impact. You can search for your pension provider on their quick lookup tool here, or read a more in-depth analysis here.

This will give you a rough idea of where your provider invests your money, particularly if you are invested in your providers ‘default fund’.

These rankings are based on the overall impact of each provider and do not necessarily take into account the impact of directed investments. For example, some providers offer ethical, sustainable or climate-aware funds that may apply stricter rules around fossil fuels, tobacco, weapons or other industries. However, these options may not be reflected separately in provider-wide rankings, so it is worth checking the details of your specific fund.

What is a default fund?

A default pension fund is the standard investment option your pension provider puts you in if you have not actively chosen your own funds.

Many workplace pensions use a default fund because most people do not make an active investment choice.

Step 2: Log in to your pension account

If you can’t find your fund listed on Make My Money Matter, or if you want to find out if you are invested in your providers default fund, you will need to go and check for yourself.

Start by logging in to your account on your pension provider’s website or app. (If you have never logged into this before you will usually need your account number which can be found on the paperwork they have supplied you with or on any annual statements. If you cannot find these ask your employer for them or to request copies on your behalf.)

You are looking for the section that shows:

Top tip: If you know you have old workplace pensions but you can’t remember what providers these are with you can find out through the government website here.

Step 3: Find the exact fund name

Write down the full name of your fund. It might be something like:

Try to capture the exact wording. This will make it much easier to search for information.

If your pension is split across several funds, write down the names of each one. You might find that there is information about each fund provided to you and you can choose how much of your pension is invested across each fund.

Step 4: Search for the fund’s climate information

Once you have the fund name, search online for the fund name plus one of these phrases:

For example:

“[Fund name] carbon footprint pension”

or

“[Provider name] TCFD report pension”

This should help you find any published reports or factsheets that have been published about the fund. This will help you to understand the status of the fund and its impact on the environment.

Top tip: if you cannot find any published reports or information about the funds carbon footprint, this tells you something in itself. Mainly, that the chances are the carbon footprint of the fund is very high!

What does TCFD mean?

TCFD stands for Task Force on Climate-related Financial Disclosures.

In plain English, it is a reporting framework that helps companies and pension providers explain how climate change could affect investments, how much carbon their investments are linked to and what they are doing to manage climate-related risks.

Many pension providers now publish TCFD-style climate reports for their funds or wider business.

Step 5: Look for the fund’s carbon footprint

In the climate report or fund factsheet, look for words such as ‘Carbon footprint’, ‘financed emissions’ or ‘tCO₂e’.

You might find that the fund factsheet doesn’t specify it’s carbon footprint but does list specific investments and can check yourself if any of the companies are bad for the environment.

You can also look to see if the fund, or your pension provider more generally has any specific net zero targets it is aiming for. Look for phrases like:

What does tCO₂e mean?

tCO₂e means tonnes of carbon dioxide equivalent.

It is a way of measuring different greenhouse gases, such as carbon dioxide and methane, using one common unit.

Step 6: Check if your current fund is the lower-carbon option

Do not assume that your provider’s main default fund is the greenest option. In most cases it isn’t. However many providers will allow you to specify how you want your pension invested by selecting different types of fund.

Go back to your account on the providers page or app and look for alternative funds with names such as:

What does ESG mean?

ESG stands for Environmental, Social and Governance.

It is a way of looking at how companies perform on issues such as environmental impact, Human rights and living wage/executive pay.

However, ESG does not always mean “green” or “low carbon”. Some ESG funds may still invest in fossil fuels or other high-carbon sectors.

My pension isn’t invested sustainably – now what do I do?

Firstly, get some advice. We can’t and won’t tell you to move your pension into an ethical fund. That decision is up to you and you alone. You should ensure you fully understand what moving investments will mean for you and your future.

If you do choose to make a change you have two main options:

Option 1: Select an ethical fund with your current provider.

If your current provider offers the facility to choose where your pension is invested then you can simply move a % of your pension into that fund. You might have to do this over the phone with them if you cannot manage it online.

Option 2: Move your pension to a sustainable provider

There are more and more sustainable and green pension companies out there. You can use comparison websites such as the Good Shopping Guide or The Ethical Consumer (Requires subscription)  to find one that works for you.

Moving your pension is a bit like switching your energy provider. There is a lot of paperwork involved but it’s often less hassle than you think and the company you are switching to will usually help.

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