Deloitte LLP, London, will introduce a new default fund that places a greater focus on sustainability, a spokeswoman confirmed.
About £1 billion ($1.4 billion) in defined contribution assets in Deloitte's default fund will be shifted into the Aberdeen Standard Investments Sustainable World Index Fund, she said. Assets are currently run in a global equity strategy. Further details including the manager of the current passive fund were not available. The switch will happen on or after Aug. 8, the spokeswoman added.
The change relates to all 35,000 participants in the plan, which is run under the Standard Life Master Trust. Participants who do not wish to transfer assets to the new strategy may choose to invest their assets instead in any of 16 self-select funds outside the default fund.
"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," said Stephen Griggs, Deloitte U.K. managing partner, in a news release. "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."
ASI is a money management partner of workplace retirement plan provider Standard Life, part of insurance company Phoenix Group.