Deloitte to introduce new sustainable default pension fund

The move is expected to place a greater focus on sustainability, as the fund assesses investments across ESG factors

Deloitte has announced plans to introduce a new sustainably-focused default pension fund for all of its 35,000 pension scheme members in the Standard Life Master Trust, as part of its wider commitments on climate change and sustainability.

It will become the largest investor in the Aberdeen Standard Investments (ASI) Sustainable World Index Fund, with £1bn of pension investments expected to move into the fund.

The move is expected to place a greater focus on sustainability, as the fund assesses investments across environmental, social and governance (ESG) factors, as well as providing support to markets and organisations that contribute to a more sustainable future.

Commenting on the plans, Deloitte UK managing partner, Stephen Griggs, said: 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, he said.

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, Griggs said.

He said: 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.