Edinburgh-based asset management giant Aberdeen Standard Investments (ASI) has joined a list of major institutional investors to shun Deliveroo’s initial public offering (IPO) next month amid concerns over workers’ rights at the food delivery company.

Aberdeen Standard, which manages £457 billion of assets, said it is concerned about the sustainability of Deliveroo’s business model “including but not limited to its employment practices, and also the broader governance of the business.”

Andrew Millington, Head of UK Equities, Aberdeen Standard Investments, said: “As long-term investors, we’re looking to invest in businesses that aren’t just profitable, but are sustainable – employee rights and employee engagement are an important part of that.

“Our clients’ expectations of how we incorporate ESG into our decision making have changed hugely over the last decade and so we feel our clients are supportive of our approach.

“We will not be taking part in the Deliveroo IPO as we are concerned about the sustainability of the business model, including but not limited to its employment practices, and also the broader governance of the business.”