New research from now:pensions, in partnership with Debate Mate, reveals that 54% of university students aged 18 to 25 would be more engaged with their pension savings if they knew their money was being invested in environmentally sustainable ways to tackle climate change.
The survey, conducted with over 2,000 students across the UK, aimed to explore young people’s perspectives on pensions and environmental sustainability. The results highlight the opinions among students regarding climate action. Almost half (49%) still believe that “Reduce, Reuse, Recycle” is the most effective way to combat climate change, while more than three-quarters (81%) say tackling climate change is equally, or more, important than growing their savings.
When asked where investments could make the most positive impact on sustainability, 58% of students said they would prefer their savings to be invested in companies already having a positive impact on the environment, rather than in companies currently harming the environment but working towards sustainability goals.
The survey findings suggest that university students care deeply about climate change and sustainability but may not yet fully understand how financial choices, including pensions, can play a role in driving change.
When it comes to education, an overwhelming 97% of students believe that sustainability should be a mandatory part of the UK national curriculum. The findings also show that environmental and social responsibility extends to career choices—90% of students said they would consider a company’s sustainability efforts when applying for a job.
Keith Guthrie, UK Head of Sustainability at now:pensions, commented:
“Through our partnership with Debate Mate, we aim to help students build a healthy relationship with money and understand how pension savings impact their future and the environment. It is a privilege to work with young people to shed light on the often-overlooked role pensions play in driving real-world impact.”
Margaret McCabe, Founder and Group CEO of Debate Mate, added:
“At Debate Mate, we know that the young people we work with care deeply about the environment, and they are the generation that will bring about change. The results represent the need to do more to communicate to young people how their money can tackle the problems of today.”
The research underscores the growing desire among students to align their financial decisions with their environmental values. As sustainability continues to shape consumer and career choices, awareness around the role of pensions in funding a greener future could be key to increasing engagement among young savers.