How to Check If Your Workplace Pension Is Invested Sustainably
Most people in the UK have a workplace pension, often through auto-enrolment. Yet despite this being one of the largest investments they’ll ever make, many have no real idea where their money is invested or what it’s supporting.
If you’ve ever wondered whether your workplace pension is invested sustainably, or whether it’s funding industries you’d rather avoid, you’re not alone. The good news is that checking your pension investments is far simpler than it sounds, even if you’ve never looked at your pension before.
This beginner-friendly guide explains how to check if your workplace pension is invested sustainably, step by step, in clear, practical language.
In short, you can check whether your workplace pension is invested sustainably by logging into your pension provider’s portal, identifying the fund you’re invested in (usually a default fund), and reviewing its holdings or ESG labels. Most UK pension providers also offer sustainable or ESG fund options that you can switch to if you choose. But, lets explain this in more detail.
Why Your Workplace Pension Investments Matter
Your workplace pension isn’t just a savings pot. The money is actively invested in companies and markets around the world, meaning it helps shape both your future income and the wider economy.
Depending on how it’s invested, your pension could be supporting renewable energy, healthcare, and technology, or it could be funding fossil fuels, tobacco, weapons manufacturing, or companies with poor labour practices. Because pensions are long-term investments, they have real influence over how businesses behave and grow.
Understanding where your pension money goes gives you clarity and control. You don’t need to become an expert or make changes immediately but simply knowing what you’re invested in is a good first step.
If you’re new to sustainable investing, it can help to start with a broader overview of how environmental, social and governance factors influence where money is invested.
Find Your Workplace Pension Provider
The first step is identifying who holds your workplace pension. If you’re currently employed, this information is usually available on your payslip or through your HR or payroll portal. If it’s not obvious, your HR team can point you the right direction.
Many people also discover at this stage that they have more than one workplace pension from previous jobs. Each pension is invested separately, so it’s worth checking all of them over time. It’s also a good idea to merge these into a SIPP (Self-Invested Personal Pension.
Once you know your provider, log in to your pension account online. If you’ve never accessed it before, you can usually set up access using your National Insurance number.
Identify the Fund Your Workplace Pension Is Invested In
Most workplace pensions automatically place you into a default fund when you join. These funds are designed for the “average” employee and typically focus on growth early in your career, gradually reducing risk as you approach retirement.
Default funds are practical, but they’re rarely chosen with sustainability as a priority. Inside your pension portal, look for sections labelled “your investments”, “fund details”, or “where your money is invested”.
Make a note of the fund name and whether it’s described as a default, growth, or lifestyle fund. This fund name is key for the next step.
Look for ESG or Sustainable Pension Fund Labels
Some pension funds clearly state if they consider sustainability. Look for terms such as:
ESG (Environmental, Social, Governance)
Sustainable
Responsible
Ethical
Climate-focused
Low carbon
If your fund includes one of these labels, it’s likely applying at least some sustainability criteria. If it doesn’t, that doesn’t mean it’s “bad”, it simply means sustainability may not be a core focus.
Many UK pension providers now offer ESG or sustainable fund alternatives, even if they don’t make them the default option.
Be mindful that terms like ESG, ethical or sustainable can mean slightly different things depending on how a fund is structured. Find you what these labels actually mean and how definitions vary.
Check What Companies and Sectors Your Pension Invests In
Most providers publish a fund factsheet showing the largest companies or sectors the fund invests in. You don’t need to read every detail, the top holdings usually give a clear picture.
Pay attention to the main sectors involved. These often include:
Energy (fossil fuels or renewables)
Technology
Financial services
Healthcare
Industrials
It’s important to note that some funds market themselves as sustainable while still investing heavily in controversial industries, a practice often referred to as greenwashing.
This step helps you answer a simple but important question: what kind of industries is my pension supporting? The goal here isn’t perfection, it’s awareness.
Create a Simple Pension Investment Overview
To make things clearer, it helps to write this down. A simple overview can look like this:
Fund name → Top holdings → Key sectors → Comfort level
For example:
Fund: Default Growth Fund
Holdings: Oil major, global bank, tech company
Sectors: Fossil fuels, finance, technology
Comfort level: Not aligned
This doesn’t need to be detailed or technical. It’s just a way to see whether your pension broadly matches your values.
Ask Your Pension Provider If You’re Unsure
If anything is unclear, don’t hesitate to contact your pension provider directly. You can ask:
What companies or sectors does my fund invest in?
Do you offer sustainable or ESG pension fund options?
UK pension providers are legally required to explain how your money is invested. Often, a short phone call or email can save hours of confusion and research.
Deciding Whether to Make Changes
Once you understand your pension investments, you have a few valid options. You might decide to stay in your current fund, switch to a more sustainable alternative, or take more time to research before making any changes.
There’s no right or wrong choice here. The aim is to make informed decisions, not rushed ones. Even small changes, made early, can have a meaningful impact over time.
The next step is understanding how to change or switch your pension investments safely.
Common Myths About Sustainable Workplace Pensions
Many people worry that sustainable pension funds perform worse or are harder to understand. In reality, many ESG and sustainable funds perform in line with traditional funds over the long term, and most pension providers now make switching straightforward.
You don’t need a large pension pot for your choices to matter, understanding where your money goes is valuable at any stage.
Conclusion
Your workplace pension plays a bigger role in your life than you might realise, shaping both your financial future and the wider world. Taking the time to check whether it’s invested sustainably gives you clarity, confidence, and control.
You don’t need to change everything overnight. Simply knowing where your pension is invested is a meaningful step, and one that puts you ahead of most people.