Insurers move towards net-zero goals on investment portfolios

The pensions bulk annuity market continues to grow: nearly £50bn of assets were transferred to insurers in 2023, and there are no signs of the market slowing down. As more pension schemes look to insure benefits, insurers are increasingly coming under scrutiny for their sustainability efforts.

In recent years, all insurers in the bulk annuity market have publicly committed to ambitious targets to reduce their emissions. These targets cover their own business operations, but crucially also the emissions associated with their investment portfolios.

Many insurers are aiming for carbon neutrality on their investments by 2050 or earlier, and all have set interim targets. For pension scheme trustees who are looking to buy out, tracking insurers’ progress against their interim targets can be a good indicator of their likely success.