• Press releases
  • Standard Life Leads Pensions Industry by Investing in Labelled Funds under SDR Regime
  • Believed to be the first pension provider to proactively align to the FCA’s new Sustainability Disclosure Requirements (SDR) and fund labelling rules for its primary default pension solution
  • Phoenix Group In-house Fund Manager, Phoenix Unit Trust Managers (PUTM) will be one of the first adopters of the ‘improvers’ label for 6 existing Equity Funds and 2 new Fixed Income Funds
  • Using ‘Improvers’ labelled funds cements Standard Life’s commitment to sustainability improvement, and transparency

Standard Life is leading the UK’s pension industry, incorporating the new labelling regime designed to help investors and savers better understand a fund’s sustainability objectives – part of the FCA’s new Sustainability Disclosure Requirements (SDR) to promote high standards in sustainable investing integrity and transparency.

Standard Life is planning to enhance its main default investment solution, Sustainable Multi Asset by investing all equity and fixed income allocations through 8 PUTM funds that have adopted the Sustainability Improvers label. This will help evolve and further embed Standard Life’s sustainable investment approach for over 2 million pension savers. Standard Life expects to implement this approach in early 2025 with over 75% of Sustainable Multi Asset investments benefiting from a formal objective to align with the transition to Net Zero by 2050, while complying with the new regulatory threshold. With the inclusion of listed equity and fixed income funds both younger and older pension scheme members will benefit from the development.

Additionally, using improvers labelled funds paves the way for Standard Life to make similar changes to its Future Advantage and Investment Pathways solutions.

Callum Stewart, Head of Investment Proposition Development at Standard Life said: “The inclusion of sustainability labelled funds in our proposition is a significant milestone and underlines our commitment to improving outcomes for members, as we lead our sector’s transition to more sustainable investment solutions. We committed to a sustainable investment philosophy when transitioning 1.5 million customers to sustainable strategies between 2020 and 2022, and now believe we are the first pension provider to embrace the new regulatory framework in advance of it becoming a requirement for pension funds. This development helps future proof our solutions by embedding a verified sustainability approach to improve financial outcomes for members.”

Sindhu Krishna, Chief Sustainable Investment Officer, Phoenix Group, added: “Alongside our customers, we know that the impacts of climate change need to be addressed to optimise returns. The new FCA labelling regime brings integrity to the market and aims to bring more transparency and information to customers. This will enable a better understanding in how funds are investing in companies with a credible path to reach net-zero by 2050.”

To secure the new labelling, Standard Life worked collaboratively with colleagues in the wider Phoenix Group, leveraging their expertise and benefiting from launch of the FTSE Phoenix Climate Aware Index series - a demonstration of leveraging the wider capabilities of the UK’s largest long-term savings and retirement business.

Under SDR fund labelling members are required to be provided with clear and simple information including the sustainability goal of the fund; the approach being taken to achieve this goal; and an annual update on progress.

Utilising the PUTM Sustainability Improvers labelled funds, Standard Life will invest mainly in transitioning companies, to support the management of climate risks and opportunities on the journey to net zero by 2050 on behalf of our members. This will be supported by an aligned stewardship strategy. Additionally, Standard Life’s customised Index Methodology aligns climate transition with forward-looking insights, including those available from the Transition Pathway Initiative. By adopting this more forward-looking approach, Standard Life anticipates it will improve long term financial outcomes or member and greater transparency once the transition to the new regulatory disclosures completes.

Enquiries

James Ikin
Lansons
07825 191308
jamesi@lansons.com

James Merrick
Standardlife
07974 063067
james_merrick@standardlife.com

Dilesh Sangaran
Phoenix Group
07974604323
Dilesh.Sangaran@thephoenixgroup.com

Notes to editors:   

SDR Labels:
Sustainability Improvers: these funds invest mainly in assets that may not be sustainable now but aim to improve their sustainability. Examples may include investments in companies that are on a credible path to net zero by 2050 or are committed to improving social standards such as human rights.

Sustainability Focus: these funds invest mainly in assets that focus on sustainability for people or the planet. Examples may include activities to support the production of energy, for example, from solar, wind or hydro-gen.

Sustainability Impact: these funds invest mainly in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet. Examples may include renewable energy generation and social hous-ing.

Sustainability Mixed Goals: these funds invest mainly in a mix of assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet. Examples may include a mixture of investments from the labels above (Focus, Improvers and Impact).

Funds that have labels will also need to give you clear and simple information, including:

  • what the sustainability goal of the fund is
  • the approach to achieving it
  • annual updates on progress towards the goal

About Standard Life

Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years. Today, it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.  Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together.

Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options. 
We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs and plan a future they feel confident about.

The value of investments can go down as well as up and may be worth less than originally invested.

About Phoenix Unit Trust Managers

Phoenix Unit Trust Managers provide a range of UK based Unit Trusts and Authorised Contractual Schemes as part of the Phoenix Group.

Its mission is to improve returns for Phoenix policyholders and deliver value for shareholders. These funds are not available to new retail customers and are not actively marketed.

About Phoenix Group

Phoenix Group is the UK’s largest long-term savings and retirement business with around £290 billion of assets under administration.

As life expectancy continues to increase and the pension landscape continues to shift, we offer our 12 million customers a broad range of pensions, savings and life insurance products across our fam-ily of brands which include Standard Life, SunLife, Phoenix Life and ReAssure. Our vision is to help even more people on their journey to and through retirement, providing the right support at the right time.
We are a growing and sustainable business united by a common purpose – helping people secure a life of possibilities. This drives everything we do and means taking responsible and sustainable in-vestment decisions and using our presence and voice to drive forward change for the better, for our customers, our colleagues, and our wider community.

A FTSE 100 company, we also feature in the FTSE100 ESG Select Index series and we are playing an active role in helping to invest in a sustainable future. As part of this, we have committed to our operations being net zero carbon by 2025 and for our investment portfolios we have set an interim target of a 50% reduction in the carbon emission intensity of c£250bn by 2030, as we progress to-wards our portfolios being net zero carbon by 2050 or sooner.

We have been recognised as a leading employer for many years. We are accredited as a Living Wage Employer, Living Pension Employer and as a Carer Positive Exemplary Employer for offering the best support to colleagues who are carers.

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