Impact Investing Principles for Pensions

The Impact Investing Principles (2025 update)

Helping trustees to intentionally align investments with positive impact and fiduciary duty.

 

What are the Impact Investing Principles for Pensions?


The Impact Investment Principles for Pensions provide an accessible, practical insight into the opportunity presented by impact investing and concrete steps pension scheme trustees (and others managing pension schemes) can take to begin impact investing.

Developed originally by the Impact Investing Institute and Pensions for Purpose in 2020, the May 2025 update includes The Global Impact Investing Network (GIIN)’s significant contribution and endorsement to reflect:

  • The changing landscape of impact investing,
  • Evolving legal and regulatory realities which pension schemes operate under.
  • Lessons from five years of market experience.

Impact investment through these principles is aligned with fiduciary responsibilities. Investing in positive social and environmental solutions, aimed at improving pension members' standard of living1 fostering a sustainable living environment or aligning with their beliefs, adds a distinct extra value dimension alongside financial returns.

For more information, on impact investment performance, please see Pensions for Purpose’s Impact Lens research, which provides a UK asset owner and investment consultant perspective on impact funds’ allocation and financial performance.

1 A recent legal opinion from legal firm Eversheds Sutherland for pension scheme Natwest Cushon explains how member interests are broader than what are typically considered financial factors and include standard of living in retirement. Factors that impact standard of living include the standard of healthcare, social care, access to clean energy, levels of infrastructure and a vibrant economy and the strong tax base it brings.
https://www.pensionsage.com/pa/legal-opinion-provides-further-clarity-on-fiduciary-duty-rules.php


Why adopt?


Impact investing through these Principles:

  1. Adds value for your scheme members: set impact goals that reflect the needs and values of beneficiaries – such as affordable housing and services, climate change mitigation, and community wellbeing.
  2. Moves from intentions to outcomes: establish accountability by linking impact priorities with incentives and clearer reporting.
  3. Drives meaningful change: the Principles empower trustees to move beyond conventional stewardship approaches such as voting and engagement to use their capital more strategically – to actively shape markets, influence policy and drive meaningful corporate behaviour.

See the evidence: explore Impact Lens research for impact fund performance data and more.

 

The Four Principles

Read the full breakdown

How do I use the Principles?

Are you part of a pension fund team, a trustee of a pension fund or an independent adviser to a pension fund? 

Your pension fund can become an Adopter of the Principles and use them as a good governance framework to guide your investment process. You need to:

  • Sign the commitment statement and provide a quote on why you decided to Adopt the Principles.
  • Complete an interview, which we will turn into a case study.
  • Input into an annual review to understand the progress your pension fund is making.

Start here

Are you an investment consultant or fiduciary manager?

You can become an Adopter of the Principles and build them into the advice and management of assets on behalf of your clients, demonstrating that you are leading on this important agenda. You need to:

  • Sign the commitment statement and provide a quote on why you decided to Adopt the Principles.
  • Complete an annual evidence-gathering exercise to understand what you are doing for your clients on impact.
  • These findings will be included in a yearly report published by Pensions for Purpose.

Get started

Are you an organisation that would like to endorse the Principles?

You can become a Supporter. You need to:

  • Sign the commitment statement and provide a quote on why you decided to support the Principles.
  • Promote the Principles and encourage their adoption.

Join as a Supporter

Resources


Questions?


Contact us


Best practice
 


The Impact Investing Principles for Pensions sit within one of our curated Ecosystem Themes, Impact Integration.

Pension Fund Adopters are able to submit their case studies in this section of our Asset Owner Awards. Previous winners have included:

2024 - Impact Investing Adopter Award - Surrey Pension Fund





2023 - Impact Investing Adopter Award - Wiltshire Pension Fund

 
 

2022 - Impact Investing Adopter Award - Environment Agency Pension Fund





2021 - Impact Investing Adopter Award - South Yorkshire Pensions Authority 


 

Pension Scheme Adopters

Aon MasterTrust, The

Aon MasterTrust, The
×

For us, Impact Investing is about combining the delivery of strong financial returns for our members whilst making a positive impact on the world around us. This is incredibly important as most of our members will be invested in The Aon MasterTrust for decades and thus focusing on investments that positively impact the world in years to come makes sense both financially and socially.

The Impact Investing Principles are a really useful framework. Particularly helpful is the way that the principles are straightforward, high-level and easily understood. It is much better to have something that is useable and widely adopted, than something that is daunting and rarely used. The Impact Investing Principles helped us with the thought process, rather than requiring lots of compliance level ‘box-ticking’.

Clwyd Pension Fund

Clwyd Pension Fund
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"I wanted to give my backing to the Impact Investing Principles for Pensions as a practical framework to encourage other funds to consider impact investing. This is not just about measuring impact or sustainability - this is sensible investing". Debbie Fielder, Deputy Investment Director

Collegia

Collegia
×

We support the Impact Investing Principles for Pensions and commit to:

  1. seek investment advice on an impact investing approach for our pension fund;
  2. review environmental, social and governance impacts across our investment portfolio; and
  3. consider available impact investment strategies.

We will be able to demonstrate action in one or several of these areas within six months of adopting the Principles and will recommit on an annual basis with evidence for how the Principles have been used.

Environment Agency Pension Fund

Environment Agency Pension Fund
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Investing for impact not only delivers for the environment and society, but it delivers financial returns too. That has certainly been our experience since we set up our private market impact fund in 2014. We are really pleased to support The Impact Investing Principles for Pensions and share best practice across the industry.

London CIV

London CIV
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Over the past year, we’ve made great leaps towards our responsible investment milestones. Most notably we committed to net-zero greenhouse gas emissions by 2040, becoming the first Local Authority pension pool to do so. In line with this objective, we launched multiple products with an explicit environmental impact objective – to help drive down carbon emissions reductions in the real economy – alongside a financial return. By aligning with the Impact Investing Principles for Pensions, we can further demonstrate how we are taking action and deploying capital towards strategies that present dual or triple-bottom-line benefits. Joining the Impact Investing Adopters Forum also provides a unique opportunity to share best practice with peers. Ultimately this will help to ensure we deliver on our Client Funds investment and sustainability objectives.

PensionBee

PensionBee
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"At PensionBee we believe that pensions have the collective power and potential to change the world for the better. Trillions of pounds are invested in companies that can improve or harm the planet and society through their business activities. In February 2023 we launched our Impact Plan, the latest in a series of PensionBee customer-led plan innovations for the UK pensions market which offers a unique opportunity to use our pensions to invest in helping create a better future for people and the planet, whilst saving for retirement. There's no shortage of challenges facing our planet and society and we believe that bringing impact investing to the mainstream in this way is a big milestone. We are very proud to become an Adopter of the Impact Investing Principles for Pensions, which will support us in endorsing our commitment to helping our customers save for a happy retirement." Giorgia Antonacci, ESG Manager

Smart Pension Master Trust

Smart Pension Master Trust
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"We're excited to be on our impact investing journey. We have backed the Impact Investing Principles for Pensions as it gives us a really tangible framework to help us get to where we want to be, including generating competitive returns to improve member outcomes. Through practical guidance and support, it will help us be part of the solution to the global systemic issues we currently face."

South Yorkshire Pensions Authority

South Yorkshire Pensions Authority
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"Organisations with credibility are behind the Impact Investing Principles for Pensions . By supporting this we are acting in concert and creating collective action to address social and environmental impact risks and opportunities alongside a financial return." George Graham, Director

Surrey Pension Fund

Surrey Pension Fund
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"The Impact Investing Principles for Pensions are pitched at the right level as they are achievable. They provided us with the support to look at how we wanted to contribute to a sustainable transformation. We would like to see the Principles evolve and continue to push the industry". Neil Mason, Strategic Finance Manager

Wiltshire Pension Fund

Wiltshire Pension Fund
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'Wiltshire Pension Fund Committee believe that investing with a positive social and environmental impact is an increasingly important issue for investors and can be achieved alongside competitive market returns. Investing with impact can also help incorporate risk and return drivers which would otherwise not be considered. The Fund wishes to invest in a way that minimises negative impacts on society and the environment and, where possible, makes a positive contribution.' Jennifer Devine, Head of Wiltshire Pension Fund

Investment Consultant & Fiduciary Manager Adopters

Aon

Barnett Waddingham

bfinance

bfinance
×

There is a shift in the way investors are approaching responsible investing. ESG integration is fast becoming a norm; investors are increasingly wanting to go beyond and invest with impact. Asset owners wanting to allocate to impact funds face some distinct challenges, from education on “what impact they can have” to weeding out the impact washing that is still highly prevalent. At bfinance, we have been working closely with a range of institutional clients on addressing these challenges, including navigating their entry to the rapidly evolving product universes and expect investor demand to continue to grow in the coming years. The Impact Investing Principles, which we endorse, brings practicality to helping pensions schemes allocate their capital with people, planet and profit in mind.

Gordian Advice

ISIO

Redington

Redington
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The Principles ensure that we continue to advance and evolve our thinking on impact investing, making sure we get the topic on as many of our client's agendas as possible. By highlighting positive and negative impacts, we can bring impact alongside risk and return showing our clients this is an evolution of their existing investment approach.

Schroders Solutions

Schroders Solutions
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As a fiduciary manager, the way we direct capital not only shapes the financial returns we can deliver for our pension scheme clients and their members but also the impact we have on the world. The way we invest is changing, driven by a fundamental shift in how companies are being viewed and valued. Where once we considered only risk and return, we now assess a third dimension – impact. We believe that considering these three pillars together can help us assess an asset’s real value and make better investment decisions for our clients. This is why we fully endorse the Impact Investing Principles for Pensions.

Van Lanschot Kempen Investment Management

Van Lanschot Kempen Investment Management
×

Van Lanschot Kempen Investment Management was pleased to become an adopter of the Impact Investing Principles and to further develop our relationship with Pensions for Purpose. Not only are the Principles themselves important, they are common sense, good practice, and express how we at Van Lanschot Kempen already think about impact specifically and investment more broadly: that it is worth doing, does not limit our capabilities or opportunities for our clients, and aligns our clients, managers and portfolios in an easily understood – and non-technical – way. It also builds naturally on the co-creation of our Global Impact Pool with our Dutch clients in 2018, and why we were pleased to include this as a case study with the Institute.

XPS Investment

XPS Investment
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Responsible investing is core to our advice to clients as we believe it forms the basis of good investment decision making. Going further however, pension scheme trustees are increasingly looking to pursue positive impact whilst generating financial returns. Investing with the intention to contribute towards alleviating global social and environmental challenges is key to a future that members can retire into and we are keen to support pension schemes on this journey. We endorse and welcome the Impact Investing Principles for Pensions which set out a much-needed framework with practical steps in the evolving area of impact investing.

Supporters

Organisations that want to demonstrate endorsement of the Principles and which will actively promote the Principles among their members/network

Global Steering Group for Impact Investment, The (GSG)

Global Steering Group for Impact Investment, The (GSG)
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We support the Impact Investing Principles for Pensions and the market infrastructure around them, particularly by disseminating the principles internationally. We will work to encourage all our stakeholders, through the National Advisory Boards, to consider the impacts of their investments along with the opportunities that positive impact investments provide.

Institute and Faculty of Actuaries

Institute and Faculty of Actuaries
×

"The Institute and Faculty of Actuaries supports the work and efforts of the Impact Investing Institute and the development of impact investing. We support the development of the Impact Investing Four Good Governance Principles for Pension Schemes and the market infrastructure around them, particularly the enhancement of the metrics and frameworks for impact measurement, management and reporting. We encourage actuaries to consider the impacts of their investments along with the opportunities that positive impact investments provide.”

Maturity Institute OMINDEX®

Maturity Institute OMINDEX®
×

The Impact Investing Principles for Pensions provide a crucial foundation for re-defining investment and corporate success. Where financial return, environmental outcomes, and human value can be fully integrated within a mutually inclusive, stakeholder value system. The Principles are completely aligned with our own aims and objectives and we are excited that OMINDEX® can play its part to support them; to help demonstrate how true, total stakeholder value should be at the heart of organisational health. We hope our contribution will help to re-shape a financial services sector that authentically embeds Impact as a core, common purpose.

The Investor Forum

The Investor Forum
×

  • We support the Impact Investing Principles for Pensions and will use our voice to promote and amplify the importance of the principles to our Members.
  • We will encourage our Members to participate in, and report on, projects and engagement activity that can deliver impact.
  • We will demonstrate the impact of what we do each year in The Investor Forum Annual Review.

World Benchmarking Alliance

World Benchmarking Alliance
×

We support the Impact Investing Principles for Pensions and the market infrastructure around them, particularly those in scope of our proposed financial system benchmark, including pension funds and asset managers. We will work to encourage these institutions to consider the impacts of their investments along with the opportunities that positive impact investments provide.

Case Studies & Evidence
Case Studies
Smart Pension Master Trust – Impact Investing Principles for Pensions

Adopter case study.


Blog
The Impact Investing Principles for Pensions: Adopters’ evidence full paper…

Many investment consulting and fiduciary management firms have signed up as Adopters of The Impact Investing Principles for Pensions. These companies are pivotal in directing the flow of pension fund capital.


Case Studies
Surrey Pension Fund – Impact Investing Principles for Pensions

Adopter case study.


Case Studies
South Yorkshire Pensions Authority – Impact Investing Principles for Pensions

Adopter case study.


Case Studies
The Aon MasterTrust – Impact Investing Principles for Pensions

Adopter case study.


Case Studies
PensionBee – Impact Investing Principles for Pensions

Adopter case study.


Case Studies
Wiltshire Pension Fund – Impact Investing Principles for Pensions

Adopter case study.


Blog
Impact Investing Principles for Pensions: Adopters’ evidence full paper…

Since 2021 we have been delighted to welcome investment consulting and fiduciary management firms as Adopters of the Impact Investing Principles for Pensions. These firms play a pivotal role in the direction…


Latest News
Press
Updated Impact Investing Principles for Pensions – press release

New guidelines to help trustees future-proof pension funds and support members’ living standards.


Press
Wiltshire Pension Fund become the latest Adopter of the Impact Investing…

Demonstrating their endorsement of the principles and commitment to impact investing.


Blog
Impact Investing Principles for Pensions: Adopters’ evidence 2022

Over the course of 2021 and 2022, we have been delighted to welcome investment consulting firms as Adopters of the Impact Investing Principles for Pensions.


Press
London CIV become the latest Adopter of the Impact Investing Principles…

Demonstrating their endorsement of the principles and commitment to impact investing.


Press
Schroders Solutions – Adopter of the Impact Investing Principles for Pensions…

Demonstrating their endorsement of the principles and commitment to impact investing.


Press
The Environment Agency Pension Fund has become the latest Adopter of the…

Demonstrating their endorsement of the principles and commitment to impact investing.