The latest developments in the ESG space.

As firms become increasingly concerned about their ESG ratings, Standard Life has just completed its Sustainability Disclosure labelling implementation, investing close to £30 billion ($40 billion) via sustainability focused investment funds.

Standard Life said it invests in labelled funds under the UK’s Sustainable Disclosure Regulation (SDR) regime for its Future Advantage multi asset range. The Financial Conduct Authority (FCA) introduced a package of measures to improve the trust and transparency of sustainable investment products. To protect against greenwashing, it introduced an anti-greenwashing rule which reinforces that sustainability-related claims must be fair, clear, and not misleading. As part of the Sustainability Disclosure Requirements regime, Standard Life has adopted the Sustainability Improvers™ label.

Standard Life, part of Phoenix Group, said it continues to embed sustainable investing principles to improve financial outcomes across its multi asset offerings with the successful adoption of Sustainability Improvers™ labelling for customers invested in its Future Advantage fund range.

In December 2024, Standard Life announced that having received the regulatory green light it intended to be the first mainstream provider to adopt Sustainability Improvers™ labelling to promote high standards in sustainable investing, integrity and transparency, and better financial returns for customers. 

Since then, it has adopted the approved labelling, creating what is believed to be the industry’s first multi asset fund range that broadly aligns to the Sustainability Improvers™ label. 

Standard Life is also investing in these labels across its pension defaults offered to workplace, and retirement income customers using Investment Pathways. 

“We have worked hard to be one of the first in the off-platform market to embrace the FCA’s new Sustainability Improvers™ label across a majority of assets in our core multi asset fund range for advisors. Our research tells us that 79 per cent of intermediaries’ advised clients expect their pension provider to be investing responsibly on their behalf,” Warren Bright, head of retail intermediary and private client distribution, at Standard Life said. “In line with the Sustainability Improvers™ label, our underlying funds are being invested mainly in transitioning companies.”

By having solutions with responsible investment built-in, Standard Life said it is aiming to reduce the carbon footprint of equity and corporate bond investments by 7 per cent a year, and by 50 per cent by 2030, reaching net zero by 2050, compared with a 2019 baseline.