A pension is a long-term investment. Its value can go down as well as up and could be worth less than was paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment.

Growing your pension pot so that you have enough to live on in retirement is likely to be one of your top financial goals. You might also want to help create a sustainable future to retire into.

The good news is that these goals can go hand in hand. We believe that responsible investing can lead to better long-term financial outcomes and help to deliver a more sustainable future.

What is responsible investing?

Responsible investing covers a number of different approaches that consider the financial risks and opportunities of environmental, social and governance (ESG) factors.

Here are a few of the many examples:

Environment: A company’s impact on land, sea, air and wildlife, plant life and the climate. This includes how much energy a company uses, its waste disposal, land development and carbon footprint.

Social: A company’s relationship with its employees, suppliers and the community where it operates. Labour practices, human rights, employee well-being, health schemes for staff and supplier relationships are all ‘social’ factors.

Governance: A company’s management and processes; who’s running the company, how it's managed and how it approaches salaries and strategy.

How a company manages (or doesn’t manage) its ESG behaviours and impacts can affect its financial performance – and therefore the returns (value) it can deliver to you, the investor.

There’s a lot to think about. A company’s readiness to move to a low-carbon future, its waste disposal and energy use, supply chains, and treatment of its employees and local communities – are just some of the areas where a company can fail or flourish.

That's why our investment managers consider these ESG risks and opportunities when they decide where to invest your pension money – and to encourage companies to maintain high ESG standards going forward (known as stewardship). Find out more using the links below.

Learn more about responsible investing

We're helping to build a more sustainable future to retire into

As part of Phoenix Group, Standard Life is taking action to invest in the future. We've set clear targets to help fight climate change and to drive tangible change towards a low-carbon economy. You can read more about Standard Life’s commitment to sustainability and responsible investment and the Group’s sustainability commitments .