The UK is in the midst of one of its hottest summers since records began. Spring 2025 was the UK’s warmest and sunniest on record, and June became the warmest month on record for England – and summer isn’t over yet. So, how do our pensions play a part and what can we do to help save the planet?

The UN’s body responsible for assessing climate change, the IPCC, have now said it is “unequivocal that human influence has warmed the atmosphere, ocean and land.” The Met Office has said that extreme heat, and rainfall, are becoming the new normal. Planet heating pollution was found to have tripled the death toll from the blistering heatwave that hit Europe at the end of June – and the true toll of unnatural heat might still not be known.

In its latest State of the Climate report 2024, covering last year’s climate, the Met Office analysis found that the number of days with temperatures 8C above the average for 1961-1990 had trebled in the last ten years, and for 10C have quadrupled. Rain has also become more intense, October 2023 to March 2024 was the wettest ever, with records spanning back to 1767, which led to flooding that undoubtedly is going to become more common in the future.

So, what do our pensions have to do with it?

At Path, we understand the urgency of the task at hand – creating a liveable future for ourselves and future generations and protecting the planet and its wildlife. According to Make My Money Matter, a shocking £88 billion of UK pension pots are investing in fossil fuel companies. Beyond simple financial returns, these investments have a knock-on effect to the lives of millions of people, especially in climate vulnerable countries.

David Macdonald, founder of Path Financial says:

People are unknowingly investing directly into the fossil fuels that cause these unprecedented heatwaves through their pensions, savings and investments.

Across the country, people need greater awareness of the link between our investments and their effects on the planet. Fossil fuel lobbyists don’t want the public to know that they can instead choose to invest in clean and renewable energy, nature and conservation, human rights and education, instead of funnelling money into the destruction of the planet.

Rather than just wait for the next ‘unprecedented’ time, the next record hottest day of the year, or the next dangerous wildfires across Europe, we need to take this summer as a sign that things will only get worse without effective action. Recycling and taking public transport are all well and good, but if billions are still invested in the fossil fuel industry, I am afraid we will be wishing for these temperatures in 20 years’ time when summers are unbearable.

So how do people make a change?

Knowing what your investments are funding and that they reflect your own personal values is essential, especially as the planet continues to be exposed to more climate-related events.

For those with private pensions, ISAs or investments, opting to move away from investments in fossil fuels also reduces the risk of ‘stranded assets’, which is when assets in fossil fuels reduce in value as the world moves away from use and towards cleaner energy sources.

Fund managers also play a part – with many of the major fund managers who manage trillions of assets worldwide voting against shareholder resolutions around human rights, ESG and DEI. Fund managers can vote on your behalf as they hold your shares, so if you want your voice to be heard, choose a fund manager that has a strong voting record and aligns with your values.