It is easy to look at the complex world of global climate finance and feel insignificant. When governments and multinational corporations are dealing in billions and trillions, what difference can one individual make?
The answer might surprise you: through your pension savings, you are already part of a massive system moving money toward (or away from) climate solutions. 20-25% of stock markets worldwide are owned by pension funds. This represents an enormous pool of capital. More importantly, it means you can choose where your part of this money is invested and what kind of future the companies you invest in help build.
Directing your pension money toward climate action might feel scary, but pension companies such as Sweden-based SPP actively prove that investing more sustainably is anything but activism. Considering sustainability risks in companies and global sustainability trends are examples of responsible investing from a financial standpoint. Johanna Lundgren Gestlöf, head of sustainability at SPP, puts it into clear terms in an interview with We Don’t Have Time: “Many of the trends driving the economy today, such as electrification, climate adaptation, renewable energy and innovation in healthcare and food systems, support sustainable investments.” Sustainability as Risk Management
Pension funds are uniquely focused on long-term value creation, something that other financial institutions may overlook. Today, the voices of both climate science and global policy are loud and clear: fossil fuels are not our future. Operations that rely on fossil fuels today will need to scale down or change course in the next few decades. Therefore, investing in fossil fuels and other unsustainable practices poses a long-term financial risk, even if the companies are profitable today.
On the flip side, solutions that provide clean, sustainable alternatives are poised for exponential growth and rapid implementation as world leaders turn climate pledges into action plans. The IEA estimates that 35% of greenhouse gas reductions by 2050 will be achieved using technology that is not yet available. Shifting capital into clean solutions protects retirement savings from stranded-asset write-downs. 
“Pension savings represent 20-25% of the world’s stock market value. That’s enormous influence,” said Johanna Lundgren Gestlöf, Head of Sustainability at SPP, to We Don’t Have Time. Photo by WFranz on Pixabay.
The energy market has already started reacting to this prognosis. Over the past 10 years, investments in renewable energy have caught up with, surpassed, and dwarfed fossil fuel investments. In 2025, renewable investments were twice as large as investments in fossil fuels globally. So how can you guide your pension savings to be more focused on sustainability?
“Choose a pension provider that uses the trust and capital you've entrusted to them to help build a world that will be a better place to retire in,” says Johanna Lundgren Gestlöf.
“Look for a provider that actively engages with companies on environmental, social, and governance issues, uses its voting rights responsibly, and helps drive positive change. If you want greater exposure to solution providers, you can also complement your portfolio with Article 9 funds that have sustainability as an investment objective.”
Investments Drive Change
The coin of sustainable investments has two sides, and both are bright. While investing in planet-friendly solutions is well positioned in the sustainable future that society must move towards, it is also a critical mechanism to accelerate our transition toward that sustainable society.
The Institute and Faculty of Actuaries warn that current climate policies risk a mind-blowing 50% GDP reduction by the late 21st century. The actions of investors, the decisions on which investments are financed, and the direction of major financial institutions like pension funds, can contribute to protecting our economic future. 
Pension savings, in aggregate, make up a massive capital actor with significant influence. Photo by Valen Pix.
“Pension savings represent roughly 20-25% of the world's stock market value. That's enormous influence,” said Johanna Lundgren Gestlöf. “I would hope every pension provider used that influence to clearly communicate the direction companies need to take to secure a prosperous future, and to advocate for the policies needed to steer capital towards sustainable outcomes.”
The influence that Johanna is talking about is also called active ownership, where investors use their financial influence to affect the direction of a company’s development. As an example, SPP, through the Storebrand Group, engaged with JFE Holdings, one of Japan’s leading steelmakers. By working collaboratively with other major shareholders, they successfully pushed JFE to significantly enhance its climate governance. This constructive engagement led JFE to update its emission reduction targets, actively committing to exceed a 30% reduction by 2030, and started an annual dialogue about aligning its technology investments with this target.
“Many investors are already working together to do this, but there is still potential for much stronger collective action,” continued Johanna. “At the same time, it is becoming increasingly clear that real economy change cannot be delivered by the financial sector alone. The most important driver is long-term policy and regulation that creates the conditions and incentives for companies to invest and transition in a sustainable direction.”
These tools – Active ownership and government regulation – are not mutually exclusive. In fact, they are both necessary to reach the required carbon reductions. By choosing to invest in more climate-friendly solutions, you are voting for a thriving planet, betting on the businesses of the future, and ensuring that the money you earn comes from companies that work just as hard for the climate as you do.
