Responsible investment that works – without adding complexity for employers

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At Standard Life, responsible investment is treated as part of the management of long‑term investment risk and opportunities, not a separate ethical decision.

That means it’s built into how pension default solutions are designed and governed, helping schemes remain resilient over the long term while keeping things straightforward for employers.

 

Why the default matters most

In most workplace pension schemes, the majority of members are invested in the default solution. That makes it one of the most important decisions employers and advisers make — and the one most closely scrutinised in governance reviews.

Standard Life’s Sustainable Multi Asset default solution brings responsible investment considerations directly into the default solution design. 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, this approach doesn’t require employers to make additional investment choices or take policy positions. Responsible investment is embedded within the default itself, so the focus stays firmly on risk, return and member resilience, including those related to responsible investment.

 

Built to support governance conversations

Expectations around pension governance continue to rise. Employers and trustees increasingly need to demonstrate that schemes are well run, offer value for money and can stand up to regulatory scrutiny.

Standard Life’s approach aligns with current Financial Conduct Authority (FCA) and The Pensions Regulator expectations, including disclosure standards and anti greenwashing requirements. Where good practice exists to support member benefits, it has been applied — even where it isn’t 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 employers, this makes governance conversations more straightforward. Schemes are easier to reference in reviews and value for members assessments, without the need for lengthy explanations or caveats around sustainability claims.

Focused on outcomes, not ideology

Research consistently shows that members’ top priority is simple: growing their pension. That’s why Standard Life’s investment decisions remain return focused.

Responsible investment is used as a tool to help identify and manage financially relevant long term risks and opportunities— such as exposure to climate impacts, weak governance or poor stewardship — that could affect returns over time. These risks are managed within the investment design, rather than through member or employer choices.

This helps avoid complexity, keeps schemes simple, and reduces reputational risk for employers.

 

Supporting members beyond accumulation

Good outcomes don’t stop at saving into a pension. Employers are also increasingly focused on engagement and how well schemes support members as they approach retirement.

Alongside investment design, Standard Life supports members through digital tools, guided planning journeys and targeted support at key decision points. For those nearing retirement, regulated advice and income planning support can help reduce the risk of poor decisions when accessing savings.

For employers, this helps evidence the overall value of the scheme — showing that it supports members throughout their journey, not just during accumulation.

 

No added burden for employers

Employers want reassurance that their pension scheme is compliant, well governed and easy to run.

By embedding responsible investment into default solution design, keeping governance responsibility with the provider, and using clear, compliant communications, Standard Life’s approach helps keep complexity away from employers. There are no additional decisions to make, and no extra administration to manage.

 

A practical approach to responsible investment

Responsible investment adds value when it improves outcomes, seeks out opportunities and reduces risk — not when it complicates decisions. By building long term risk management into default solutions, supporting member engagement, and maintaining high governance standards, Standard Life aims to make responsible investment work in practice for employers and advisers alike.

You can find out more in the Standard Life Sustainability Report 2025, which sets out our approach in more detail.

 

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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.
www.standardlife.co.uk

 

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.