Pension savers reveal a strong distrust in fast fashion and its negative contribution to society
New research from leading online pension provider, PensionBee, has revealed that a majority of savers believe that the fast fashion industry, which rapidly produces clothing at low cost for the mass market, is detrimental to society.
In its annual survey, PensionBee asked customers about their views on the impact of various high profile industries such as fast fashion and big tech. The digital pension provider has uncovered that 82% of women aged 30 and under hold this view, indicating that they would not want to invest in fast fashion companies via their pensions. This is despite fast fashion companies purposely targeting the digitally native younger generation, with trend-driven, low cost garments (1).
The fast fashion sector is projected to shrink in the next five to 10 ten years due to increasing consumer awareness about its environmental impact (2). In 2019, a House of Commons Environmental Audit Committee report revealed that textile production contributes more to climate change than international aviation and shipping combined (3).
The report also highlighted that “poverty pay and conditions are standard for garment workers, most of whom are women”. It also voiced concerns about the use of the labour of children, prisoners, bonded workers, and slaves to produce garments. Prior to this, a 2018 Financial Times investigation had found that UK-based textiles workers tend to earn below minimum wage and suffer from unsafe working conditions, due to low prices demanded by retailers and their lack of commitment (4).
One female respondent, aged 41-50, commented that she wants to invest in companies that are “Fair and sustainable. It’s the only way business will offer long-term returns. Not interested in short-term returns”.
In contrast, most savers believe that big tech, specifically the five largest and most dominant companies in the information technology space (Apple, Alphabet [Google], Amazon, Facebook, and Microsoft) make a positive contribution to society (59%). Only 8% of savers feel this industry makes a negative contribution.
Less than half of respondents (46%) believe that the meat and dairy industry makes a positive impact on society. This is in a context where a quarter of global emissions come from food and animal products account for almost 60% of food emissions (5).
While savers were mostly neutral about nuclear energy (45%), a significant proportion felt that this sector has a positive influence (39%).
PensionBee’s data shows that savers across all age groups and genders prioritise action on companies that treat workers unfairly, and 33% want to divest from companies that don’t pay the Living Wage to all their workers. One male respondent aged over 51 commented that he wants his pension to be “investing in companies that prioritise the welfare and wellbeing of their employees”.
Appendix
Table 1: PensionBee customers’ views on the ‘fast fashion’ sector
Source: PensionBee, March 2021. Total question respondents: 1,612. Numbers have been rounded.
Table 2A: Male PensionBee customers’ views on the ‘fast fashion’ sector by age
Source: PensionBee, March 2021. Total question respondents: 1,612. Numbers have been rounded.
Table 2b: Female PensionBee customers’ views on the ‘fast fashion’ sector by age
Source: PensionBee, March 2021. Total question respondents: 1,612. Numbers have been rounded.
Table 3: PensionBee customers’ views on the ‘big tech’ sector
Source: PensionBee, March 2021. Total question respondents: 1,614. Numbers have been rounded.
Table 4: PensionBee customers’ views on nuclear energy producers
Source: PensionBee, March 2021. Total question respondents: 1,616. Numbers have been rounded.
Table 5: PensionBee customers’ views on the meat and dairy industry
Source: PensionBee, March 2021. Total question respondents: 1,616. Numbers have been rounded.
Table 6: PensionBee customers’ views on the Living Wage
Source: PensionBee, March 2021. Total question respondents: 1,676. Numbers have been rounded.
Table 7: PensionBee customers’ priorities for voting
Source: PensionBee, March 2021. Total question respondents: 1,504. Ranking in order of 1 - 6 priority for voting.
Footnotes
