Standard Life has now switched 87,000 members savings through its master trust default, into a new sustainable default option.
This is the first stage of its process to transfer all its existing default savers into the new Sustainable Multi Asset Universal Strategic Lifestyle Profile.
To date this first stage has seen it transfer around £1.1bn of assets. By the end of the year it is expecting to have transferred £15bn into this new default fund. This will include not only its master trust members, but those savings through its existing GPP default strategies.
The transition of members in Active and Passive Plus III will commence in May, subject to appropriate market conditions. Members in the remaining Active and Passive Plus range will be switched to sustainable strategies by the end of the year.
Standard Life, part of Phoenix Group, said this fund will become the automatic default for both new and existing members of Standard Life’s Master Trust DC section of schemes.
Standard Life workplace managing director Gail Izat says: “Completing the DC Master Trust switch to our Sustainable Multi Asset strategies is a significant milestone, embedding Environmental, Social and Governance (ESG) considerations at the heart of our pension savings offering.
“Moving 87,000 members is no small feat and the learned experience has prepared us well for the next phase of switching when we’ll be moving close to £15 billion in AUM into sustainable solutions.”
The Sustainable Multi Asset investment solutions integrate ESG targets designed to manage pension growth through positive outcomes. These include a 50 per cent reduction in carbon emissions, screening out of controversial weapons, tobacco production, thermal coal and unconventional oil and gas, while also driving positive change through increased stewardship.
This default fund also has an increased equity exposure, designed to target good customers outcomes.
Standard Life said ESG factors are considered from a financially material perspective, rather than a moral perspective, to identify areas that could have a positive or negative impact on a company’s business model.
Standard Life says it is focused on ensuring its investment portfolios achieve net zero carbon by 2050. Phoenix Group recently announced 2025 and 2030 interim targets as part of its roadmap to net zero by 2050. This will see the carbon emissions of £250bn AUM reducing by at least 50 per cent by 2030.
