The Best Ethical Pension Fund
Which pension providers are the most ethical and sustainable? For the answer, see our Ethical Pensions comparison table to compare companies’ ethical scores.
What is unethical about pensions?
According to a recent survey by the Make My Money Matter campaign, two-thirds of savers do not know where their money is being invested. But did you know that the best pension fund for saving money may not be good for Environment, Animals, and People? The choices you make about your pension provider can have a significant impact on the world around you — from financing fossil fuels and deforestation to funding nuclear weapons. This is why finding the best ethical pension UK consumers can access has never been more important.
Since 2001, The Good Shopping Guide has been independently researching and rating companies on ethical criteria, making our comparison tables one of the most trusted resources for consumers seeking the best ethical pension provider in the UK. Our Ethical Pensions comparison table is one of the most comprehensive independent resources available to help you navigate this complex sector.
Our independent research: How pensions fund global conflict
Some pension funds are in fact financing armaments, used in wars and conflicts. Several leading pension providers have been criticised for their involvement in financing nuclear weapons companies. By choosing an unethical pension, your wages may be funding weapons of mass destruction. You can see which pension funds to avoid by looking for Human Rights information in our Ethical Pensions comparison table. One of the worst offenders is Legal & General, which was criticised for contributing billions to nuclear weapons companies. This is one company we recommend you steer clear of if you’re concerned about your pension funding the tools used in wars and violence. ShareAction, a leading UK NGO campaigning for responsible investment, has highlighted the extent to which mainstream pension funds continue to finance the arms trade and other harmful industries.
Other companies rated poorly on our ethical comparison table for pensions include Nutmeg, Vanguard and Bestinvest.
Our findings also reveal that many pension providers are still investing in other harmful businesses such as invasive surveillance technology. This is covered under Other Irresponsible Lending, which looks at controversial investments, such as financing weapons and tobacco companies.
Our independent research: Pension funds and the environment
Our research found that many so-called ethical pension providers invest in fossil fuels. The money that you put into your pension could be funding tar sands pipelines, offshore oil or gas pipelines, and coal plants. According to Make My Money Matter, each year the average UK pension finances 23 tonnes of CO2 emissions through its investment in fossil fuel related businesses. That’s the equivalent of running 9 family cars every year! ClientEarth, a UK environmental law organisation, has pursued legal action against pension fund trustees over their failure to adequately manage climate-related financial risk — a sign of the growing legal and ethical pressure on providers to divest from fossil fuels.
When searching for the best ethical pension provider, you will come across many companies involved in unethical practices. Our research into the pensions industry examined investments into controversial industries, including companies participating in deforestation. We found that pensions are often invested in the mining, agribusiness — which includes meat and soybean production — and energy sectors. These industries have been found to have direct involvement in the deforestation of the Amazon rainforest.
This issue is reflected in the Environmental Destruction category of our research, which examines whether a pension provider has received criticism for investing in harmful environmental projects. We recommend you avoid companies who have received a bottom rating under this criterion.
One example of a pension company involved in Environmental Destruction is Vanguard, which appears at the bottom of our Ethical Pensions comparison table. Vanguard has been criticised for financing deforestation projects in the Amazon rainforest and contributing to the destruction of the earth’s natural habitats. If Vanguard is your pension provider, your money may be involved in this.
The carbon footprint of your pension is likely to be far larger than that of your car, your diet or your energy use combined. Pension divestment — the process of moving retirement savings away from fossil fuel companies and other harmful industries — is one of the most powerful individual actions available to UK consumers who want to address their personal contribution to the climate crisis. Choosing a green pension or a net zero-aligned pension fund sends a clear market signal to providers that savers expect more responsible stewardship of their retirement savings.
Solutions: How can I find an ethical pension?
The good news is that there are now pension funds and providers that choose to invest in ethical industries. These funds are conscious of their impact on the planet and its inhabitants. These companies offer the best ethical pension options for ethically minded consumers. Find these companies in the top third of our Ethical Pensions comparison table. They’re the ones in green!
Now more than ever, employees are wanting to know that their pensions are not being invested in companies that harm the Environment, Animals, or People. By checking out our research, you can choose the best sustainable pension for meeting your ethical standards.
Due to the rise in demand for ethical pensions, some companies now offer pension funds that exclude controversial investments, such as fossil fuel-free and ESG-focused pensions. Many of the most responsible providers are signatories to the UN Principles for Responsible Investment (PRI), an internationally recognised framework that commits investors to incorporating environmental, social and governance (ESG) factors into their decision-making. If you want reassurance that your money is contributing to the world in a positive way, these are some of the best ethical pension fund options for you.
If you have a workplace pension, it is worth checking with your employer whether they offer an ethical or ESG-focused pension option. Under UK legislation, pension trustees are required to consider financially material ESG risks, which means even mainstream providers are increasingly offering responsible investment options alongside their standard funds. Asking your employer about your workplace pension’s investment strategy is a simple but impactful step.
We have identified the pension companies that are paving the way for sustainable finance. These pension companies offer the best choices for putting ethics and sustainability at the heart of your decision-making. Our Ethical Pensions comparison table allows you to choose the best ethical pension provider for your values and principles. Using our ethical comparison tables saves you the time and effort of doing the research yourself. Look in particular for companies who have attained our Ethical Accreditation, for the highest ethical standard. If you are also looking to make ethical choices across your wider finances, see our Ethical Investment page, Ethical ISAs page, Ethical Banks & Building Societies comparison table and Ethical Mortgages comparison table for further guidance. You may also wish to consult The Pensions Regulator, the UK government body responsible for protecting the interests of pension savers.
See our Ethical Pensions comparison table to compare brands
Our team of researchers has extensively examined and researched the thousands of brands that are included on our ethical comparison tables. Simply click on any brand’s name below to read an in-depth article about its history, business ethics and activities.
Why don't most people know where their pension is invested?
Many savers pay little attention to how their pension funds are managed, often because the process feels complex or distant. Yet pension funds collectively hold trillions of pounds and can finance industries including arms, fossil fuels, and deforestation. The GOOD Shopping Guide’s Pensions Ethical Ratings Table helps consumers identify providers that take a more responsible approach to investment.
Can pension funds be linked to the arms trade?
Some of the UK’s largest pension providers have faced criticism for financing companies involved in nuclear weapons and armaments. Legal & General, for example, has attracted scrutiny in this area. The GOOD Shopping Guide assesses pension providers on criteria including irresponsible lending and responsible investment policy, giving consumers the information they need to make more informed choices about where their money goes.
What is the environmental impact of pension investments?
Some pension funds have been linked to fossil fuel investments and activities associated with environmental destruction, including Amazon deforestation. Vanguard, for instance, has attracted criticism on these grounds. Consumers who want their retirement savings to avoid contributing to climate harm can consult The GOOD Shopping Guide’s Pensions Ethical Ratings Table to find providers with stronger environmental commitments.
Are there ethical or fossil-fuel-free pension options available?
A growing number of pension providers now offer ESG or fossil-fuel-free investment options, allowing savers to align their retirement funds with their values. The GOOD Shopping Guide’s Pensions Ethical Ratings Table can help consumers identify which providers are making genuine efforts to offer more responsible investment choices, without necessarily sacrificing long-term financial returns.
What does Ethical Accreditation mean for a pension provider?
Ethical Accreditation from The GOOD Shopping Guide is awarded to companies that have demonstrated a genuine commitment to ethical business practices across the Environment, Animals, and People. For pension providers, this confirms responsible investment behaviour and transparent policies. Aviva is one example of an accredited pension provider, reflecting its commitment to responsible financial management and its consideration of wider social and environmental impact.
How can I find the most ethical pension provider?
Consumers can use The GOOD Shopping Guide’s Pensions Ethical Ratings Table to compare providers across criteria including environmental reporting, carbon disclosure, responsible investment policy, and irresponsible lending. Providers that hold Ethical Accreditation have met the highest standard of ethical conduct. Choosing a provider that sits above the benchmark helps ensure your retirement savings are managed with greater responsibility and transparency.
Is Aviva an ethical pension provider?
Aviva sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table and holds Ethical Accreditation, demonstrating its commitment to ethical and sustainable business practices. The provider receives strong ratings across the majority of assessed criteria, though it falls short in irresponsible lending and there is room for improvement in its responsible investment policy. As an Ethical Innovator, Aviva is recognised for its progressive approach to responsible financial management.
Is Interactive Investor an ethical pension provider?
Interactive Investor sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across most assessed criteria, including environmental reporting and political donations, though there is room for improvement in its responsible investment policy. If Interactive Investor were to apply for Ethical Accreditation, this could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is PensionBee an ethical pension provider?
PensionBee sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across most assessed criteria, including environmental reporting, irresponsible lending, and political donations, though there is room for improvement in its responsible investment policy. If PensionBee were to apply for Ethical Accreditation, this could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is Royal London an ethical pension provider?
Royal London sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across the majority of assessed criteria, including environmental reporting, environmental destruction, and political donations, though it falls short on its responsible investment policy. If Royal London were to apply for Ethical Accreditation, this could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is Legal & General an ethical pension provider?
Legal & General sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across environmental reporting, environmental destruction, carbon disclosure, responsible investment policy, and political donations, though it falls short in its irresponsible lending rating. Applying for Ethical Accreditation could further demonstrate Legal & General’s commitment to ethical and sustainable business practices to a wider consumer audience.
Is AJ Bell an ethical pension provider?
AJ Bell sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across environmental destruction, carbon disclosure, irresponsible lending, and political donations, though it falls short on responsible investment policy and there is room for improvement in its environmental reporting. Applying for Ethical Accreditation could further demonstrate AJ Bell’s commitment to ethical and sustainable business practices to a wider consumer audience.
Is LV= an ethical pension provider?
LV= sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across several criteria, including environmental reporting, irresponsible lending, and political donations, though there is room for improvement in its carbon disclosure and it falls short on responsible investment policy. If LV= were to apply for Ethical Accreditation, this could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is Penfold an ethical pension provider?
Penfold sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across several criteria, including environmental destruction, irresponsible lending, and political donations, though it falls short on environmental reporting and there is room for improvement in its responsible investment policy. If Penfold were to apply for Ethical Accreditation, this could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is The People's Pension an ethical pension provider?
The People’s Pension sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across environmental destruction, irresponsible lending, and political donations, though it falls short on responsible investment policy and there is room for improvement in its environmental reporting. Applying for Ethical Accreditation could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is Transact an ethical pension provider?
Transact sits above the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. The provider performs well across environmental destruction, carbon disclosure, irresponsible lending, and political donations, though it falls short on responsible investment policy and there is room for improvement in its environmental reporting. Applying for Ethical Accreditation could further demonstrate its commitment to ethical and sustainable business practices to a wider consumer audience.
Is NEST an ethical pension provider?
NEST sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction and political donations, it falls short across several criteria, including responsible investment policy, with room for improvement in environmental reporting, carbon disclosure, and irresponsible lending. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Pru an ethical pension provider?
Pru sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, irresponsible lending, and political donations, it falls short on responsible investment policy and there is room for improvement in its environmental reporting and carbon disclosure. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Standard Life an ethical pension provider?
Standard Life sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, irresponsible lending, and political donations, it falls short on responsible investment policy and there is room for improvement in its environmental reporting and carbon disclosure. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Sun Life an ethical pension provider?
Sun Life sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, irresponsible lending, and political donations, it falls short on responsible investment policy and there is room for improvement in its environmental reporting and carbon disclosure. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Wesleyan an ethical pension provider?
Wesleyan sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, irresponsible lending, and political donations, it falls short on responsible investment policy and there is room for improvement in its environmental reporting and carbon disclosure. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Quilter an ethical pension provider?
Quilter sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, irresponsible lending, and political donations, it falls short on responsible investment policy and receives acceptable marks for environmental reporting, carbon disclosure, and other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Fidelity an ethical pension provider?
Fidelity sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental reporting, carbon disclosure, and political donations, it falls short on environmental destruction and responsible investment policy, with room for improvement in its irresponsible lending rating. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Zurich an ethical pension provider?
Zurich sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental reporting, environmental destruction, and carbon disclosure, it falls short on irresponsible lending, political donations, and responsible investment policy, and there is room for improvement in its handling of other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Hargreaves Lansdown an ethical pension provider?
Hargreaves Lansdown sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, carbon disclosure, and irresponsible lending, it falls short on responsible investment policy, political donations, and other criticisms, with room for improvement in its environmental reporting. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Scottish Widows an ethical pension provider?
Scottish Widows sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in certain areas, including environmental reporting, carbon disclosure, and political donations, it falls short on irresponsible lending, responsible investment policy, and other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find significantly more responsible alternatives in the Pensions Ethical Ratings Table.
Is Aegon an ethical pension provider?
Aegon sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in carbon disclosure and irresponsible lending, it falls short on environmental destruction, political donations, responsible investment policy, and other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find significantly more responsible alternatives in the Pensions Ethical Ratings Table.
Is J.P. Morgan Personal Investing an ethical pension provider?
J.P. Morgan Personal Investing sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental reporting, it falls short across several key criteria, including environmental destruction, responsible investment policy, irresponsible lending, political donations, and other criticisms, with room for improvement in its carbon disclosure. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find more responsible alternatives in the Pensions Ethical Ratings Table.
Is Vanguard an ethical pension provider?
Vanguard sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental reporting, it falls short across the majority of criteria assessed, including environmental destruction, irresponsible lending, political donations, responsible investment policy, and other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find significantly more responsible alternatives in the Pensions Ethical Ratings Table.
Is Bestinvest an ethical pension provider?
Bestinvest sits below the benchmark on The GOOD Shopping Guide’s Pensions Ethical Ratings Table. While the provider performs well in environmental destruction, it falls short across the majority of criteria assessed, including environmental reporting, carbon disclosure, irresponsible lending, political donations, responsible investment policy, and other criticisms. Consumers seeking pension providers that meet The GOOD Shopping Guide’s ethical benchmark can find significantly more responsible alternatives in the Pensions Ethical Ratings Table.
How does The GOOD Shopping Guide's Ethical Accreditation complement other accreditations?
The GOOD Shopping Guide doesn’t replace existing certifications, it ensures your ethical credentials are clearly recognised so they are trusted by consumers. By appearing in our comparison tables, your brand reaches an audience that is actively seeking genuinely ethical options, while also being referenced by Google and AI search tools to enhance credibility and discoverability.
How is The GOOD Shopping Guide's Ethical Accreditation different from other accreditations?
Unlike many accreditations that focus mainly on compliance or internal audits, The GOOD Shopping Guide provides scored, research-led assessments across environment, people and animals. Our tables are consumer-facing and freely accessible, making it easy for shoppers and AI tools to compare brands based on verified performance, not just promises.
How does The GOOD Shopping Guide choose who is eligible for accreditation?
The GOOD Shopping Guide audits brands for their ethical impact across a variety of criteria in the human, animal and environment categories. We research the records of brands and their parent companies, and rate them across those criteria. If they are found to be above our benchmark, they are eligible to apply for Ethical Accreditation.
How can I apply for Ethical Accreditation?
You can apply for Ethical Accreditation if your brand is assessed as above our benchmark. Click on this link to fill out our online form, and our researchers will assess your brand’s viability for Ethical Accreditation.