Standard Life, a life assurance, pensions and long-term savings company in the UK, has announced the completion of 87,000 Master Trust members Switching to a new Sustainable Multi-Asset Universal Strategic Lifestyle Profile (SLP).

Standard Life has big plans to switch customers and set up sustainable strategies as the default Defined Contribution (DC) solution for its pension savers. In 2022, more than £15 billion is set to move.

Following the transition, Sustainable Multi-Asset Universal SLP's Assets Under Management have surpassed the billion-pound mark (£1 billion) and now amount to £1,100,000,000. Sustainable Multi-Asset Universal SLP is now the default choice for both new and current members of the Master Trust DC part of Standard Life's schemes.

Gail Izat, Workplace Managing Director, Standard Life, part of Phoenix Group said:

"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 Assets Under Management into sustainable solutions.”

In 2022, Standard Life expects to move 1.5 million customers and £15 billion in assets to its sustainable initiatives. Members in Active and Passive Plus III will begin transitioning in May, subject to market conditions. By the end of the year, the remaining Active Plus and Passive Plus members will be moved to more environmentally friendly options.

The ESG targets of the Sustainable Multi-Asset investment solutions are meant to control pension growth through positive outcomes. These include a 50% reduction in carbon emissions; the elimination of contentious weaponry; tobacco manufacturing; thermal coal; and unconventional oil and gas; and expanded stewardship across a team of over 50 ESG stewardship and investment specialists.

To discover areas that potentially have a good or negative impact on a company's business model, ESG variables are assessed from a financial material standpoint rather than a moral perspective.

The Sustainable Multi-Asset Universal SLP, which aims for good customer outcomes, has a growing exposure to equities. This is supported by ESG components that aim to hold up to 80% of the investment by the end of 2022 when the investment is in its growth phase.

Standard Life, as part of the Phoenix Group, is committed to achieving net-zero carbon investment portfolios by 2050. Phoenix Group recently established intermediate targets for 2025 and 2030 as part of their path to net-zero by 2050. By 2030, at least half of the carbon emissions from assets worth £250 billion will have gone down.

Source: Standard Life