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For corporate advisers, responsible investing only adds value if it strengthens default design, supports member outcomes, and stands up to governance scrutiny. Standard Life’s approach is deliberately practical — treating responsible investment as part of the management of long‑term investment risk and opportunities, not a separate ethical decision.
Start with the default — where outcomes are decided
In workplace pensions, the default solution does most of the work. It’s where the majority of members are invested and where advisers face the greatest scrutiny from trustees and employers.
Standard Life’s Sustainable Multi Asset default solution now holds around £39 billion, with approximately two million members invested. Equities and corporate bonds are benchmark-aligned and scalable, by balancing the long-term risks and opportunities of responsible investment with supporting member outcomes over time.
Crucially for corporate advisers, these considerations are built into the core components of the default. Employers are not required to make investment policy choices, and advisers do not need to explain trade‑offs between principles and performance. The emphasis remains firmly on risk, return and resilience, including those related to responsible investment.
“The default does the heavy lifting — responsible investment is built in, not bolted on.”
Justifying why responsible investing features at all in scheme recommendations could feel like a potential friction point for employers – this way, there’s no compromise for schemes or members.
Built to stand up in governance discussions
Trustees and employers increasingly expect advisers to demonstrate strong governance, value for members and a clear audit trail — particularly as expectations continue to evolve from both the Financial Conduct Authority (FCA) and The Pensions Regulator.
Standard Life’s approach aligns with current disclosure and anti‑greenwashing requirements alongside established stewardship and voting standards. Where best practice exists, it has been applied even where not technically mandatory. For example, our equities and corporate bonds have FCA’s Sustainability Disclosure Requirements (SDR) Sustainability Improvers™ label and benefit from fund level stewardship.
For advisers, the benefit is practical rather than theoretical. Schemes are easier to reference in trustee reviews, value‑for‑members assessments and employer governance conversations — without lengthy caveats or legal qualification.
“This is responsible investment supporting investment opportunities and risk management.”
Outcomes first, not ideology
Member research consistently shows that savers care most about growing their pension. Standard Life’s investment approach reflects that reality.
Investment decisions remain return‑focused. Responsible investing considerations are used to help identify and manage financially relevant long‑term risks, such as climate exposure, poor governance or weak stewardship, that could affect outcomes over time.
Advisers are not asking employers or members to opt in or take a view. These risks are managed within the investment design itself, keeping schemes simple and avoiding reputational exposure.
For corporate advisers, that supports clear, outcomes‑based recommendations rather than values‑led debates.
Supporting engagement and retirement decisions
Increasingly, advisers are judged on more than accumulation alone. Engagement and retirement outcomes matter just as much.
Alongside investment design, Standard Life supports members through digital tools, guided planning journeys and targeted support at key decision points. For members approaching retirement, regulated advice, income planning tools and annuity support help reduce the risk of poor decision‑making at decumulation.
For employers, this helps evidence scheme value. For advisers, it strengthens the overall governance narrative — demonstrating that the pension works throughout the member journey, not just during accumulation.
No added burden for employers
Employers want reassurance that schemes are compliant, well governed and easy to run.
Standard Life’s approach keeps complexity away from the employer. Responsible investing is embedded within defaults, governance responsibility sits with the provider and communications are designed to be clear and compliant. Employers are not asked to take positions or make decisions they later need to defend.
“No extra decisions for employers. No extra complexity for advisers.”
For corporate advisers, this makes schemes easier to implement and easier to manage — particularly at scale.
What next?
Responsible investing only adds value for corporate advisers if it improves outcomes and reduces risk. By embedding long‑term risk management into default solution design, supporting member engagement and maintaining strong governance standards — without increasing complexity for employers — Standard Life’s approach is designed to do exactly that.
In a market where defensibility, simplicity and outcomes matter more than ever, that pragmatic focus is likely to resonate. You can find out more in our Sustainability Report 2025.
We take a responsible investment approach to managing risks and opportunities within public equities and corporate bonds. We use equity and corporate bond funds with an explicit net-zero goal.
As a business we’re on a journey to net zero by 2050 and we have started taking actions to achieve this. While we currently invest in high emitting companies and sectors, we have developed a climate action plan to transition to net zero across our business. We believe we can help our customers reduce their exposure to climate related risk and help them take advantage of the opportunities presented by the net zero transition. Full details can be found in our Net Zero Transition Plan: Our journey to net zero | Standard Life plc.
The value of investments can go down as well as up and could be worth less than originally invested.
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Phoenix Life Limited, trading as Standard Life, is registered in England and Wales (1016269) at 10 Brindleyplace, Birmingham, B1 2JB.
Phoenix Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.