Majority of pension schemes likely to consider sustainability principles when selecting bulk annuity provider

Written by Sophie Smith

24/04/2025

Sustainability issues are a key consideration for pension schemes selecting a bulk annuity provider, research from the Society of Pension Professionals (SPP) has suggested, as 88% of those polled agreed that the Sustainability Principles Charter is likely to be a factor.

The survey found that more than half (55%) of pension professionals were aware of the Sustainability Principles Charter, which launched last year, while 45% were not aware.

In addition to this, the poll asked respondents to what extent the Sustainability Principles Charter is likely to be a factor in selecting a bulk annuity provider for the schemes that attendees advise.

A third (33%) of respondents said: “Yes, for most of the schemes I advise” whilst 55% said, “it will be a factor for some of the schemes I advise, but not the majority”.

However, the remaining 12% chose the option, “I do not expect this to be a factor for many/any schemes I advise”.

SPP event chair and Accounting for Sustainability executive director, capital markets, Kerry King, said: “I was pleased to see that a majority of pension professionals are aware of the Sustainability Principles Charter.

"It was also really encouraging that 88% of those who responded to the polling agreed that it would be a factor in their selection of a bulk annuity provider. This is very strong evidence of the increasing importance of sustainability in the decision-making process here.”

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