Standard Life publishes updated Net Zero Transition Plan, calling for stable policy to unlock long term investment for the UK transition

  • Standard Life has achieved its 2025 interim targets for its investment portfolio and its own operations
  • Reaffirms its customer focused commitment to achieve net zero by 2050 across investments, operations and supply chain
  • The plan argues that scaling investment into climate solutions depends on stable, investable policy and market frameworks

Standard Life plc (‘Standard Life’ or the ‘Group’), a retirement specialist focused entirely on retirement saving and income, today published its updated Net Zero Transition Plan, setting out its near-term plans to deliver its interim targets for 2030 to maintain progress toward its long-term ambition to become a net zero business by 2050. The plan is driven by a clear focus on customer outcomes: managing climate and nature-related risks and opportunities as financially material factors that can affect long term investment performance and retirement security.

This customer-led approach is reflected in how Standard Life is embedding the transition within its default lifestyle profile, the Sustainable Multi-Asset (‘SMA’) strategy. The SMA strategy aims to manage climate-related risks to safeguard long-term outcomes for customers by targeting a 7% annual reduction in the carbon footprint of investments, reaching a 50% reduction by 2030 and net zero by 2050 (based on a 2019 baseline), while also increasing exposure to companies investing in the transition. The strategy applies to circa £39 billion AUA and for c.2 million customers.

The approach is also informed by ongoing customer research. Standard Life’s annual Responsible Investment Viewpoint survey shows that customers’ top priority is to maximise pension growth (88%), while a large majority would prefer to avoid harm if they can (83%) and nearly half identify climate change as the most important issue in responsible investing (47%). 

The plan comes at a time when the physical effects of climate change are becoming more apparent, and the policy context is evolving. The Group believes the imperative to act remains strong, and that the actions set out in the plan are in the best interests of its customers, business and society.

Since publishing its first Net Zero Transition Plan, Standard Life has built momentum by taking action at scale, including achieving its 2025 interim targets for the investment portfolio and its own operations. The plan highlights progress across portfolios, operations and supply chain, including the rollout of decarbonising benchmarks and strategies across £74 billion of assets under administration, completion of its first three-year stewardship engagement programme, and continued work to reduce operational emissions and engage suppliers.

Bruno Gardner

For long term savers, climate and nature risks are financial risks. Our updated Net Zero Transition Plan sets out the practical actions we are taking to support better customer outcomes by reducing exposure to climate related risk and helping customers benefit from the opportunities the transition creates.

We’ve made strong progress since our first plan, including achieving our 2025 interim targets but, we are also clear that delivering net zero is not something any single business can do alone. Unlocking investment at the scale the UK needs will require stable, investable policy and market frameworks, and we will use our scale, expertise and influence to help drive the wider system changes needed to build a world worth retiring into.

- Head of Climate Change and Nature

A central theme in the plan is the need for system change. Standard Life is explicit that, despite action it is taking, its ability to achieve its long term targets is increasingly dependent on external factors, including real economy decarbonisation, investee and supplier action, reliable data and supportive policy and regulation. The plan states that the business will use its scale and voice through thought leadership, advocacy and engagement with policymakers, regulators, investee companies and suppliers to help overcome policy, regulatory and market barriers to the transition.

In particular, the plan references an ambition to scale investment, including a long term aspiration to invest in sustainable, transition and Focused productive assets, including climate solutions, while noting that delivery is currently constrained by policy, regulatory and market barriers and by the availability of an investible project pipeline.

The plan also broadens beyond carbon, reflecting an integrated approach that incorporates nature, just transition and adaptation and resilience, including work to identify and address nature-related risks and opportunities, with initial focus areas including tropical deforestation and freshwater scarcity, and further development of physical risk and adaptation and resilience considerations through scenario analysis and investment exploration.

Ends

Notes to editors:

1) Standard Life’s Net Zero Transition Plan 2026 is available at net-zero-transition-plan.pdf
2) Standard Life plc was formerly known as Phoenix Group Holdings plc.

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About Standard Life plc (‘Standard Life’)

Standard Life is a retirement specialist focused entirely on retirement saving and income.

We are proud to manage £317bn in assets on behalf of our 12 million customers, and we champion the belief that everyone's journey to and through retirement can be better.

We offer our customers a broad range of retirement, investment and protection products across our customer brands which include Standard Life, SunLife, Phoenix Life and ReAssure
Our vision is to be the UK’s leading retirement savings and income business, building on Standard Life’s leadership positions in the workplace pensions, pension risk transfer and individual annuity markets, and our growing retail business. Our award-winning services are backed by industry leading apps and strong customer service.

As a FTSE 100-listed group, we are using our size, expertise and influence to deliver better outcomes for customers.

We’ve set targets to help an additional three million customers take steps toward a better retirement by 2035. We want to play our part in delivering a net zero economy and managing our impact and dependency on nature to shape the world our customers will retire into.

Standard Life is recognised as a leading employer, with long-standing accreditation as a Living Wage Employer, Living Pension Employer and in 2026 became one of Britain’s Most Admired Companies.