Applying Behavioural Insights to Green Pensions

Summary

Encouraging Defined Contribution pension scheme members to direct their substantial savings (totaling £3 trillion in the UK) towards environmentally sustainable investments is crucial for achieving net zero goals, but current engagement is low. The Department for Work and Pensions (DWP) commissioned research, including an evidence review, surveys, and a Randomised Controlled Trial (RCT) with three major pension providers, to test various communication strategies aimed at increasing member engagement with green pensions. The project is completed, concluding that light-touch communication-based nudges were ineffective; members showed greater interest in financial performance than environmental impact, suggesting more upstream interventions are needed beyond simple communications.

Key Facts

Source Document

https://example-government.gov/policy-document-link