How Pension Funds Can Drive Positive Impact — Without Sacrificing Returns
Image: Photo by: Colin Glick
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At our recent Impact Investing Focus, industry leaders, consultants, and trustees came together to discuss how pension schemes can balance financial outcomes with environmental and social impact. Across keynotes, panels, and masterclasses, one message was clear: impact investing is no longer a niche consideration — it’s central to future-proofing portfolios and delivering meaningful change.
Keynote: Building Resilience Through Impact
Fiona Smith, Head of Responsible Investment at Smart Pension, opened the event by positioning impact investing as both risk management and opportunity creation. With 13% of Smart Pension’s default growth fund already allocated to impact investments — spanning biodiversity equity and global green bonds — they’re showing how schemes can achieve positive outcomes without compromising returns. Fiona urged schemes to focus on tangible actions over headline targets and highlighted the UK pension market’s potential to influence global sustainability.
Panel Discussion: Fiduciary Duty Meets Impact
Anne Sander (Zedra Governance) and Edina Molnar (Redington) explored the challenges of balancing fiduciary duty with impact goals in a panel chaired by Sandra Wolf , Editor at mallowstreet. They discussed the difficulty of fitting illiquid impact investments into portfolios and stressed that allocations should be meaningful to justify governance time spent. The panel highlighted the need for standardised reporting and better metrics to measure both financial performance and long-term impact.
Masterclasses: Practical Solutions for Impact Investing
Throughout the day, masterclass sessions showcased innovative solutions for institutional investors looking to achieve both positive impact and financial return:
Wayhome: Unlocking Home-ownership Opportunities Presented a gradual home ownership model helping UK households onto the property ladder, while offering institutional investors access to a diversified, impact-driven property portfolio.
Hamilton Lane: Generating Attractive Private Equity Returns with Impact Showcased their private equity strategy investing in companies driving measurable environmental and social outcomes.
Foresight: Investing in Natural Capital for Lasting Returns Emphasised the financial and societal potential of investing in nature-based assets like timber and biodiversity credits, highlighting their role in a net-zero, nature-positive economy.
AXA Investment Managers: Achieving Dual Objectives — Financial Returns and Measurable Impact Outlined their approach to investing in listed companies that are driving large-scale environmental and social change.
The Future of Impact Investing
While challenges remain — from governance complexity to political uncertainty — it’s clear that impact investing is becoming a crucial tool for pension schemes. The power of UK pension assets, combined with thoughtful investment strategies and collaboration across the industry, can deliver long-term value for both people and planet.
What were your highlights from the event? We’d love to hear your thoughts — and be sure to check out our events pages for more upcoming ESG investment events.
Join us for a half-day Natural Capital Investment Focus on the 3rd of June: And we will have a full day Sustainability Indaba which is not to be missed on the 8th of July!
