A4S creates sustainability survey for assessing BPA providers
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Signatories to the Accounting for Sustainability charter on bulk annuities have agreed to adopt a shared sustainability survey, replacing the various surveys used by advisers to assess insurers’ credentials.
The Sustainability Principles charter was introduced a year ago by A4S, the Church of England Pensions Board and Railpen to help align expectations around sustainability in pension risk transfers.
The more than 30 signatories have now also agreed to adopt the Bulk Annuity Sustainability Survey, which will replace the surveys used by different advisers to assess insurers’ sustainability credentials. A4S, which developed the survey with input from the adviser and insurer signatories*, says this could reduce the average number of sustainability surveys insurers have to complete per year from 10 to one.
The charter has been signed by eight bulk annuity providers, pension schemes representing over £100bn in assets, and pension and investment advisers with over £3.1tn of assets under advisory in the UK.
Kerry King, A4S executive director, capital markets, said the buy-in and buyout market is of growing significance for enabling the UK’s climate ambitions, noting that more than £500bn in bulk annuity transactions are expected over the next five to 10 years.
“The signatories to the charter have demonstrated a fantastic collaborative approach, coming together throughout the year with a common goal to raise the importance of sustainability within the bulk annuity process,” she added.
Tim Miller, senior manager of pensions policy at Railpen, said: "Sustainability already appears to be playing a more prominent role in bulk annuity transactions for many schemes, and I expect excellent collaborative initiatives such as the Bulk Annuity Sustainability Survey will make it easier for all parties to consider sustainability in more detail moving forward."
The charter came about because members of its Asset Owners Network wanted reassurance that considerations around sustainability-related risks and opportunities would continue once a bulk annuity transaction has been completed, according to A4S. It centres on four principles: transparency; decision making; reporting and engagement; and collaboration.
The current signatories to the Sustainability Principles Charter are:
The Sustainability Principles charter was introduced a year ago by A4S, the Church of England Pensions Board and Railpen to help align expectations around sustainability in pension risk transfers.
The more than 30 signatories have now also agreed to adopt the Bulk Annuity Sustainability Survey, which will replace the surveys used by different advisers to assess insurers’ sustainability credentials. A4S, which developed the survey with input from the adviser and insurer signatories*, says this could reduce the average number of sustainability surveys insurers have to complete per year from 10 to one.
The charter has been signed by eight bulk annuity providers, pension schemes representing over £100bn in assets, and pension and investment advisers with over £3.1tn of assets under advisory in the UK.
Kerry King, A4S executive director, capital markets, said the buy-in and buyout market is of growing significance for enabling the UK’s climate ambitions, noting that more than £500bn in bulk annuity transactions are expected over the next five to 10 years.
“The signatories to the charter have demonstrated a fantastic collaborative approach, coming together throughout the year with a common goal to raise the importance of sustainability within the bulk annuity process,” she added.
Tim Miller, senior manager of pensions policy at Railpen, said: "Sustainability already appears to be playing a more prominent role in bulk annuity transactions for many schemes, and I expect excellent collaborative initiatives such as the Bulk Annuity Sustainability Survey will make it easier for all parties to consider sustainability in more detail moving forward."
The charter came about because members of its Asset Owners Network wanted reassurance that considerations around sustainability-related risks and opportunities would continue once a bulk annuity transaction has been completed, according to A4S. It centres on four principles: transparency; decision making; reporting and engagement; and collaboration.
The current signatories to the Sustainability Principles Charter are:
Insurers:
- Aviva
- Just Group
- Legal & General
- M&G
- Pension Insurance Corporation
- Standard Life, part of Phoenix Group
- Rothesay
- Royal London
Advisers:
- Aon
- Barnett Waddingham
- Cardano
- EY
- Hymans Robertson
- LCP
- Mercer
- Redington
- WTW
- XPS Group
Pension schemes:
- Cancer Research UK Pension Scheme
- Church of England Pensions Board
- Church of Scotland Pension Schemes
- HSBC Bank (UK) Pension Scheme
- Merseyside Pension Fund
- National Grid Electricity Group Trustee Ltd
- Railpen
- Railways Pension Scheme
- United Reformed Church Ministers' Pensions Trust
Others/professional trustees:
- Accounting for Sustainability
- Association of Member Nominated Trustees
- Pensions and Lifetime Savings Association
- Pi Partnership Group
*This article has been updated to clarify that only the adviser and insurer signatories provided input to the survey
