Deloitte moves GBP1bn pension investment to sustainable fund
Deloitte is introducing a new default pension fund that places a greater focus on sustainability for all of its 35,000 Deloitte pension plan members in Standard Life’s Master Trust.
The move is part of the firm’s wider climate change and sustainability commitments, as set out in its WorldClimate strategy to drive responsible climate choices both inside and outside of our organisation.
The Aberdeen Standard Investments (ASI) Sustainable World Index Fund assesses investments across environmental, social and governance (ESG) factors, while also supporting markets and organisations that contribute to a more sustainable future and will see Deloitte become its largest investor with GBP1bn of pensions investment moving into the fund. Deloitte’s workplace scheme is managed by Standard Life and anyone who does not wish to transfer their pension to the new fund is able to explore several alternative options.
Stephen Griggs, Deloitte UK Managing Partner, says: “This is the first step on the journey to improving the sustainability of our pensions and we are committed to continuing to review the funds being developed in the market so that we can provide the best options to our members.
“With the effects of climate change more urgent than ever, it’s important that we all - businesses and individuals alike - take action where we can. This change is a result of direct feedback from our people telling us that being a more sustainable firm matters to them.
“It is important that our firm sets and meets higher standards for itself when it comes to sustainability. This includes making sure our decision-making aligns to our sustainability commitments, including where we decide to make investments.”
Gail Izat, Workplace Managing Director at Standard Life, says: “We are delighted to have helped Deloitte transition their default fund to the ASI Sustainable World Index Fund. At Standard Life, we know that many of our workplace clients share our ambition of creating a greener planet for future generations, and we strive to work collaboratively to help them achieve those ambitions. As the largest scheme to date to switch to a sustainable default fund, we look forward to continuing to support Deloitte’s 35,000 members.”
Chris Demetriou, CEO – UK, EMEA & Americas, Aberdeen Standard Investments, says: “The investment from Deloitte’s pension scheme bears testimony that there is a strong demand from investors for sustainable outcomes while retaining the traditional benefits of index funds. Our research illustrated that pension schemes increasingly require materially improved sustainable outcomes beyond what an equity tracker can deliver, hence we created the ASI Sustainable Index World Equity Fund which we believe is an important step towards expanding ESG investment opportunities for pension schemes.”
Griggs adds: “I am very proud of this move and I’m grateful to the teams who were behind making this exciting development happen. For me, this is a clear demonstration of the actions businesses can take to focus their investments to support a sustainable future for the generations to come.”