ESG Global Update

Global ESG Updates

UK pension fund modifying trust drastically

The United Kingdom’s National Employment Savings Trust (NEST) is moving almost half of its portfolio to climate-aware strategies, which involves the divestment of companies involved in thermal coal, oil sands and arctic drilling.

Divestment will occur in all companies where over 20 per cent of their revenue is derived from these activities by the end of 2020; all companies with more than 10 per cent of revenue from these activities by 2023; and all companies still involved in these activities by 2025 unless there is a plan in place to phase these activities out by 2030.

The new investment policy is aimed at achieving net-zero status by 2050 or earlier. Carbon emissions will be halved by 2030, with about $10 billion in equities (45 per cent) being moved to climate-friendlier assets. Around $2.17 billion will be removed from some of the biggest carbon emitters in the world.

The fund is also committing to investing more in green infrastructure, with current investments amounting to around $180 million already in renewable projects across Europe. Companies will be pressured to align with Paris goals, with divestment if that fails to occur.

NEST has over nine million members.