Sustainability Principles Charter signatories back 'landmark' collaborative survey

Written by Sophie Smith

06/02/2025

All signatories to the Sustainability Principles Charter for the bulk annuity process have agreed to adopt the Bulk Annuity Sustainability Survey (Bass), replacing the multiple different surveys currently used by different advisers.

The group highlighted industry support for the new survey as a “clear indicator” of the tangible progress made to increase efficiencies and bolster sustainability within pension buyout and buy-in transactions.

In alignment with the charter principles, the survey sets a high bar on how insurers should be considering sustainability in their strategic and investment decisions.

The survey, which was developed by A4S with input from all signatories, will replace the multiple different surveys used by different advisers to assess insurers’ sustainability credentials for the bulk annuity process.

This, according to the group, has the potential to reduce the average number of sustainability surveys completed by insurers annually from 10 to one.

In particular, the survey is expected to "significantly" improve the efficiency of the process and the breadth of information available for comparing the insurers responses on sustainability.

Announcing the launch of the new survey, the group also highlighted broader industry support for the charter, noting that the prominence of sustainability in the market has grown over the past year, as the number of signatories to the charter has increased.

The group also suggested that adoption of the charter has accelerated change in the market, pointing out that, in 2024, several pension schemes publicly announced that sustainability credentials and commitment to the charter principles were key considerations in selecting their buy-in provider.

Commenting, A4S executive director, capital markets, Kerry King, said: “Embedding the Charter principles into all future bulk annuity activities is vital to ensure that this market is an enabler to the UK’s climate ambitions.

"The significance of this market to those ambitions is set to increase with over £500bn in bulk annuity transactions expected over the next five to ten 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.”

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