Twenty pension funds, insurers and advisers have signed up as founding signatories to the charter, which has four guiding principles that focus on transparency, decision-making, reporting, and engagement, and collaboration. The charter was developed following consultation with pension funds, insurers, advisers and regulators.
Many defined benefit plans have made sustainability-related commitments to their participants, said Kerry King, director of capital markets at A4S, in a news release. "Pension schemes therefore require transparency during the bulk annuity process — before, during and after the point of transaction — on how the insurer considers these commitments and ensures the schemes' assets will continue being resilient to the growing threats from climate change and other sustainability challenges," King said. "In addition, insurers welcome guidance from pension schemes and their advisers as to the information that will be valued as part of the process."
Insurers that have signed up include Legal & General Group, Pension Insurance Corp. and Aviva.
"By signing the charter, signatories are recognizing the importance of transparency, embedding sustainability into decision-making, ongoing reporting to members and/or trustees, and engagement across the sector as best practice evolves," said Stephen Barrie, deputy chief responsible investment officer at the Church of England Pensions Board, in the news release. "Not only will it be a helpful guiding tool during the bulk annuity process, but it also means that we are all playing an active role in investing in a more sustainable world for members to retire into."
