Retirement, workplace savings and protection solutions provider Aegon UK announced today new environmental sustainability targets for its default pension funds. The company has committed to a 2050 net-zero target for its auto-enrolment default pension funds, and is targeting a 50% reduction in carbon emissions associated with default funds by 2030.

According to Aegon, the company is launching its new sustainable investing goals amidst growing demand for climate action by investors. The firm cited results from a recent customer survey indicating that more than three quarters of respondents agree that climate change is an important risk to consider when investing for the future., and nearly half wanting to see investing for a net-zero carbon future made mandatory.

Aegon recently announced that its LifePath strategies, the default for its TargetPlan occupational schemes and Master Trust, would see a significant boost to its ESG exposure. The company expects that by mid-way through this year, more than half of total LifePath assets, around £3 billion, will be invested in ESG strategies.

Tim Orton, Managing Director for Investment Solutions at Aegon said:

“As investment providers and a responsible business, we have a large part to play in the fight against climate change. We believe that this is not just an environmental issue, but one that is central to the future financial wellbeing of our customers. 

“Investors are giving us a very clear message that they want to see action. Aegon and other providers have the power to influence the companies that they invest in and the third-party fund managers who provide investments. Businesses that fail to change, will fail.”