For the first time pension scheme members will be given powers to hold their pension schemes to account over how social and environmental factors impact their investments.

Under new Government regulations, published today, trustees will be required to produce a policy which includes an assessment of the sustainability of their investment decisions.

The policy will need to be available to members so that they can make their own assessment of efforts to combat various areas of concern including climate change, poor corporate governance and socially harmful practices.

The Government says it is bringing forward reforms to “take account of how people put their values at the heart of the things they choose to buy, the places they live and visit, and the jobs they do, they care about the impact that their choices have on our environment and humankind.”

Under the proposals pension scheme members will be able to see how their money is being put to work and to make their views heard.

Defined contribution schemes will need to make the policy available to the wider public.

More than £1.5 trillion is invested by occupational pension schemes on behalf of millions of savers across the UK and an additional £40bn was invested in 2016/17 and under auto-enrolment.

Esther McVey MP, Secretary of State for Work and Pensions, said: “These new regulations will empower savers all over Britain, ensuring that their voices are heard when their savings are invested.

“As we see the younger generation who care more about where their money is going, they are also increasingly questioning that their pensions are invested in a way that aligns with their values.

“This money can now be used to build a more sustainable, fairer and equal society for future generations.”

Minister for Sport and Civil Society, Tracey Crouch MP, said: “This is an exciting opportunity for social impact investment, giving pensions trustees a chance to have a resoundingly positive effect on the global issues that matter to savers.”