A Sustainability Principles Charter for the bulk annuity process
Accounting for Sustainability (A4S), The Church of England Pensions Board and Railpen have brought together pension funds, insurers, pension advisers and the regulatory community to produce a Sustainability Principles Charter for the bulk annuity process.
The Charter seeks to align expectations around sustainability within the bulk annuity process. It sets out clear principles to drive greater transparency, reporting and engagement before, during and after a buy-out or buy-in transaction between pension funds and insurers.
The majority of occupational defined benefit (DB) pension schemes in the UK, representing £1.4 trillion in assets under management, are now closed, with many maturing on a path which considers transacting with a pension insurer.
Insurers, as well as pension funds and advisers, therefore play an increasingly important role in ensuring that pension investments are both resilient to the climate, nature and social crises that we face, as well as playing an active role in investing in a more sustainable world for pension members to retire into.
These four key principles are:
Transparency of values, principles and investment beliefs in relation to sustainability, as well as ongoing commitments that may guide future policy and practice affecting sustainability approaches.
2. Decision making
Evidence and understanding of how sustainability considerations are incorporated into investment analysis and decision-making processes, and investment stewardship activity.
3. Reporting and Engagement
Ongoing reporting and engagement to key stakeholders on sustainability commitments beyond the point of transaction.
Commitment to ongoing engagement across the pension sector as responsible investment best practice evolves.
Signatories will endeavour to adhere to the principles in this Charter before, during and after the bulk annuity transaction process, as well as contribute to the development of this Charter over time.
The signatories recognize the importance of greater transparency and engagement around sustainability as part of the bulk annuity process, and publicly support the use of this Charter as a helpful guiding tool.
Please email firstname.lastname@example.org if you would like your organization's name to be added as a signatory to this Charter.
- Just Group
- Legal & General Group
- Pension Insurance Corporation (PIC)
- Standard Life, part of Phoenix Group
- Hymans Robertson
- Lane Clark & Peacock (LCP)
- Cancer Research UK Pension Scheme
- Church of England Pensions Board
- HSBC Bank (UK) Pension Scheme
- Railways Pension Scheme
Others / Professional Trustees
- Accounting for Sustainability
- Pensions and Lifetime Savings Association
- Pi Partnership Group