How to align your business and its pension scheme with your ESG and sustainability values

Back in February 2024, months before his party’s general election win, Keir Starmer U-turned on a £28 billion a year green pledge. More recently, and now in power, Labour green-lit an expansion to Heathrow airport, further alarming environmentalists and threatening the government’s net zero plans.

It might feel like sustainability has taken a back seat of late – certainly since the first airing of David Attenborough’s Blue Planet II (2017) and the “Greta effect” that began in earnest a year later.

But the appetite for sustainable investing remains, and aligning your business practices with your values on sustainable issues could have significant benefits. From cementing your brand identity to attracting like-minded individuals and improving pension scheme engagement and staff morale, here are three important factors to consider.

1. Aligning business practices with your employees’ values and your brand identity matters

As a sustainability-conscious employer, you’ll have a set of brand values that form your corporate identity and inform your business practices.

This might begin with your in-office recycling policy and a cycle-to-work scheme or carpark charging points for electric vehicles. Another important area is your workplace pension scheme (more on which later).

Making, and advertising, these visible choices helps to make your company values clear to prospective clients and potential employees. This ensures you are attractive to the “right” people and that you’ll work with like-minded individuals, forming relationships based on similar ethics and shared principles.

Reinforce this brand identity by making sustainable choices throughout your business.

2. Your workplace pension scheme provides a great opportunity to demonstrate your sustainability credentials

Aside from the salary you pay, the workplace pension you offer will likely be the biggest employee benefit you provide, so it’s vital that your offering aligns with your core values.

ESG, sustainable, and impact investing funds are all set to continue growing over the coming years, which makes now the perfect time to get involved if you aren’t currently.

Older pension schemes will often have higher charges, less flexibility, and fewer fund options so start with a review of your existing scheme. You might have read our article ‘7 important reasons why you should review your workplace pension now as a business owner’ from last year, in which we spoke about this in more detail.

We can help you conduct a review and find a new scheme provider if one is needed, so be sure to get in touch for expert guidance if you need it.

The “right” provider for you will align with your values. This might mean they invest heavily in green industries and offer sustainable funds, but it might also mean they have lower ongoing charges, greater fund choice, and other flexibility, in the form of online portals, say.

These features will all help to improve staff engagement, helping your employees to buy into their pension and their future. In turn, you could see a knock-on for staff morale and productivity.

It’s important to remember too that an attractive benefits package doesn’t just appeal to current staff and aid retention. It could also be an important factor in attracting top new talent.

3. Professional guidance could be key to aligning your business finances with your principles and values

At Parker FA, our expert guidance won’t stretch to every aspect of your business's approach to sustainability. But we might be able to offer invaluable support as you think clearly about the connection between sustainability and your pensions and investments.

One of the most valuable ways to do this is via your workplace scheme and here we can help at every stage of the process. From finding the best scheme to ongoing guidance and management, we can reduce your liability, free up the time of key personnel and stay on top of changing legislation so that you don’t have to.

If you think your business would benefit from guidance on ESG and sustainability issues be sure to contact us now.

Get in touch

If you have questions about the world of ESG and sustainability, or about your business’s workplace scheme more generally, get in touch. Contact us now to talk about what we can do for you.

Please note

This article is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts. Workplace pensions are regulated by The Pension Regulator.