Frequently Asked Questions
Q1. What's the problem with workplace pensions right now?
Most people stay in their default pension fund without thinking about it. The numbers show this:
The problem? These default funds are designed to be low cost, which means they're most likely invested in big oil, coal and gas companies like Shell, BP, and Total. Even when pension providers offer better ethical options, people don't switch because it requires action and research. The information isn’t transparent and the options are not easily accessible. The system is designed for inertia.
'“ I noticed this at a Better Business Network event in January 2023. The Nest Ethical Fund was being promoted as the ethical option for workplace pensions on a panel of purpose driven businesses, which was great. But I later discovered that 99% of Nest members were still in the default fund invested in fossil fuels. An employee would have to actively move their money to the ethical option and research shows that most people don't do this. That's when I realised: we need to change the default itself.”
- Claire, Founder - My Green Pension.
Q2. So what is My Green Pension doing differently?
We’re building a default responsible by design.
When you join My Green Pension, you're automatically put into a fossil fuel-screened default fund. Your money starts invested responsibly from day one and if you want to invest in other climate-aligned options, you can.
This solves the real problem: most people will stay in the default. So the default should be good.
Q3. Will I get decent returns in a climate default fund?
This is a question I hear a lot. Here's what the evidence shows:
Nest Ethical Fund vs Nest's Default Fund (5-year returns to February 2024) - Ethical Fund: 24.1% | Default Fund: 27.6%
The ethical fund (which screens out fossil fuels) was only 3.5% behind. And it actually outperforms the default year on year.
Our default fund is designed to deliver similar returns to Nest's default over the long term (5+ years), while screening out fossil fuels. You're not sacrificing returns. You're just investing responsibly.
We're entering a new phase where research is constantly emerging. Ethical funds are beginning to show returns comparable with fossil fuel portfolios. The narrative is changing. The question "Do climate-aligned portfolios offer good returns?" is becoming "Of course they do, why wouldn't they?"
- Claire, Founder - My Green Pension.
Q4. Why should I be concerned about stranded assets?
This is important for long-term planning. If you're saving for 30-40 years (which most pensions are), here's what matters:
As the world moves to renewable energy, fossil fuel investments become less valuable. The International Energy Agency warns of a "staggering" oil surplus by 2030 if climate goals are met.
When supply far exceeds demand, prices collapse. That's bad for fossil fuel investments.
Meanwhile, 90% of new electricity capacity in 2024 was renewable. The growth is happening in clean energy.
“As more businesses are held accountable for their involvement in climate breakdown, and the renewable energy sector continues to expand, climate-aligned portfolios will not only be the safer investment but also offer better returns over the long term. We're at a critical point in the next 20-30 years. Being positioned in the growing sector (renewables) rather than the declining one (fossil fuels) is not only vital for the future of people, nature and our planet but it makes financial sense too”.
-Claire, Founder - My Green Pension.
Q5. Will I see better returns if I choose other investment options?
Yes. Research points to savers seeing more beneficial returns when they move their money out of a default fund and into options that match their risk appetite and values. That's why we are building other climate-aligned portfolios alongside our default fund.
The key difference: your starting point is already responsible.