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- Introduction
- Application
- Minimum policy standards
- Associated legislation/regulation/industry
best practice
The Socially Responsible Investment (SRI) policy (the Policy) supports the Corporate Social Responsibility objectives of Standard Life group ('the group').
Life & Pensions UK and Europe ('UK L&P') through its insured funds invests substantial sums of money on behalf of its customers.
UK L&P believes that a company run in the long-term interests of its shareholders should manage its relationships with its employees, suppliers and customers, and behave responsibly towards the environment and society as a whole. Companies that demonstrate a commitment to environmental and social responsibility are likely to enjoy comparative advantage in the long run. Increasingly, companies that fail to maintain adequate processes to manage these issues risk damage to their reputation and consequent negative effects on their brand and image that can directly affect their financial performance.
As an investor, we therefore have a policy on socially responsible investment to improve the risk adjusted return on our investments reflecting the impact social, ethical and environmental issues can have on financial performance. In addition, we believe that as a significant investor we have a responsibility to promote high standards at the companies in which we invest.
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Application
This policy is applicable to Life and Pensions UK & Europe. It applies to all insured funds that carry only the Standard Life brand name.
For the avoidance of doubt, we also make available on our tax wrappers a full range of investment options from 3rd party investment managers. Our role in these circumstances is to provide a platform through which advisors and customers have access to a whole of market offering. This policy does not apply to these investment choices except to the extent that they are covered within the preceding paragraph.
This Policy does not apply to multi-manager funds and Client Directed Investment Linked funds.
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Minimum policy standards
Through our investment management agreements we will direct our fund manager(s) to comply with the following general principles:
- To take company policies and practices on environmental and social
matters into consideration in the investment process where material
to financial performance.
- To seek to improve where possible and practical shareholder value through constructive engagement on environmental and social issues with the companies in which our funds are invested.
Although the general principles will apply to all investments made which
are covered by this policy, it must be recognised that the same standards
cannot be applied in every instance. The data available in some overseas
markets is more limited, and the company recognises that it would not
be in the interests of our customers to limit investment in companies
in such territories solely because we cannot apply similar standards to
investments as we can in, for example, the UK.
The approach must also recognise differences in the nature of private
equity investment on the one hand compared to investment in FTSE 100 companies
on the other.
The application of this policy should be sensitive to and appropriate
for the specific nature of the investment being considered. Some asset
classes, such as property, offer different considerations for social responsibility,
and this will be recognised in the way in which the principles are applied.
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Associated legislation/regulation/industry
best practice
This policy is intended to ensure that fund managers with whom we hold
investment management agreements comply with our requirements with regard
to using their influence, on our behalf, to encourage best practice standards
of corporate and social responsibility.
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