Where we invest your money

You work hard to earn your money. It's our job to invest it well for you.

At Cushon we understand that this means growing your money over the long term, in a much more climate-friendly way than most current providers.

Our mission is to grow your pension pot at the same time as reducing the risks from climate change - on both the planet and your investments because the two are linked. We do this with no compromise on the returns for you.

Most pensions are part of the problem

The average pot of an employee in the UK finances 23 tonnes of CO2 per year.

Some £3 trillion is invested in UK pensions overall, much of it funding companies that are accelerating climate change.

Cushon pensions support real-time action

With Cushon your money is invested in powering real climate solutions, such as:

• Low carbon energy and manufacturing

• High quality, sustainable buildings

• Finding ways to protect natural habitats and wildlife

Our targets are ambitious

When it comes to reducing carbon emissions, we're going harder and faster than most other pension providers

• We have already cut our investments' emissions by 78% [¹]

• We are set to further reduce emissions by 80% by 2030 [²]

We deliver financial returns

You may have been told that climate-friendly investment will mean worse returns than conventional investments. Not true.

For example, did you know that as the value of oil and gas investments have gone up, sop have those of forestry investments? Investing in trees can provide the same positive returns but without the pollution.

We invest in a wide range of ways

With Cushon your money is invested in powering real climate solutions, such as:

1. We buy shares in or loan to companies that already have low and reducing emissions

2. We invest in companies that need £ to activate their plans to reduce high emissions

3. We invest in wind, solar and other kinds of infrastructure and technology that helps the world reduce emissions

4. We use our investing power to directly influence companies to start their emissions reductions

We plan for different possible futures

No-one can say for sure what the future holds. But we know that climate change is real and will affect all our lives in the coming decades.

As governments around then world do or do not respond to that reality with policy, the world will transition and change. So we invest in climate solutions, addressing the causes of climate change. We are also investing in climate adaptations, to cope with a changed world.

Our priority is to ensure that your money is wisely invested to grow the value of your pension, whatever the future holds.

The technical part

We work with highly experienced fund managers to make sure your pension money is building you a feel-good future.

For most of the time you are contributing to your pension, we focus on growing your pot with calculated risks that aim to maximise your investments in the long term. This is called the growth stage.

Cushon's approach recognises that many of the growth opportunities are in private market investment. If you're wondering what that means - in non-technical language it means opportunities for investment that aren't available on major stock markets like the FTSE and NYSE. These private markets are also where so much innovation in climate action is taking place. So a significant proportion of our investments are made here.

Our aim is to give you market leading projected returns with lower overall risk, while also rapidly reducing emissions. It all adds up to real-world impact you can measure and feel good about.

This communication is for information purposes only and is not personal advice. The value of investments can fall as well as rise, and you may get less than the full amount you invest.

Notes

[¹] Reduction in scope 1 and 2 carbon emissions for the growth phase of Cushon's Sustainable Investment Strategy since inception (August 2022), compared to its independently verified 2022 benchmark. The benchmark, which has been verified by independent advisers ISIO, is defined as the weighted average of the carbon footprint of the underlying funds’ benchmark of 118 tCO2e/$m EVIC. For further information, see our Task Force on Climate-Related Financial Disclosures (TCFD) Report.

[²] Target for the growth phase of Cushon's Sustainable Investment Strategy to achieve a in scope 1 and 2 carbon emissions by 30th September 2030, compared to its independently verified 2022 benchmark. The benchmark, which has been verified by independent advisers ISIO, is defined as the weighted average of the carbon footprint of the underlying funds’ benchmark of 118 tCO2e/$m EVIC. For further information, see our Task Force on Climate-Related Financial Disclosures (TCFD) Report.

Article by

NatWest Cushon Explainer