Standard Life has adopted 'sustainability improvers' labelling for more than two million pension members invested in its sustainable multi-asset, future advantage, and selected investment pathway funds.

The labelling applies across Standard Life's pension defaults offered to customers of workplace, personal pension and retirement income using investment pathways.

The firm said that introducing the labelling would benefit members by improving long-term financial outcomes and promoting greater transparency.

Standard Life head of investment proposition development, Callum Stewart, commented:
"We have worked hard to be among the first in the workplace provider market to embrace the Financial Conduct Authority’s (FCA's) new sustainability improvers label across most assets in our main default solution.

“With over £20bn of Standard Life's sustainable multi-asset portfolios targeting a sustainability objective, our approach is intended to improve member outcomes while providing high levels of transparency through enhanced disclosures,” he continued, describing it as an "iterative process," with future developments informing its focus.

"In line with the sustainability improvers label, we are focusing on transitioning companies, supporting our management of climate risks and opportunities on the journey to net zero by 2050 and managing financial outcomes on behalf of our members. 

"We will deliver this approach in line with our new customised sustainable index methodologies, which are based on the FTSE climate-aligned benchmarks announced by Phoenix Group earlier this year,” Stewart added.

Currently, over 75 per cent of Standard Life's sustainable multi-asset investments have a formal objective of aligning with the transition to net zero by 2050 while complying with the new regulatory threshold.

By offering member solutions with responsible investment built in, Standard Life said it also aimed to reduce its investment's carbon footprint by 7 per cent a year and up to 50 per cent by 2030.

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