The National Employment Savings Trust (NEST) was set up to facilitate automatic enrolment for workers in the UK as part of the government's workplace pension reform in 2008. As of March 31st 2018, NEST managed £ 2.7 billion in behalf of 6.4 million members, making it the largest defined contribution master trust in the UK.
The consideration of ESG risk factors in the investment management process is part of NEST's core beliefs, as it can improve risk adjusted returns, support long-term wealth creation and help managing reputational risks. The responsible investment strategy focuses on addressing climate change, improving banking conduct and culture, understanding workforce and human capital, and promoting audit best practices. To achieve these goals, ESG issues are integrated in risk management and active ownership. Further, NEST engages with regulators and standard setters such as the TCFD, the Workforce Disclosure Initiative, and the Parliamentary Environmental Audit Committee among others. Going forward, NEST is seeking to divest its tobacco holdings from all of its portfolios in the next two years.
IPE: This month, the European Commission is due to release guidelines on climate-related reporting by companies. These are to supplement existing guidelines on non- financial reporting that the Commission published in 2017 in connection with the EU’s Non-Financial Reporting Directive (NFRD).
Yahoo! News: The federal government's Expert Panel on Sustainable Finance says Canada has a long way to go to achieve sustainable growth — and its final report says financial markets will play a fundamental role in unlocking that economic potential.
Morningstar: The group's new policy has three prongs: corporate governance overseeing its climate strategy, encouraging clients to transition into green energy and realigning loans, investments and assets to further the goals of the Paris agreement of keeping global warming at or below 2 degrees Celsius by the end of the century, Credit Agricole said.
Corporate Advisor: This diversity drive is backed by a new report, which details the experiences of black professionals working in the investment management industry as well as black student considering their careers.
IPE: Swiss pension funds and other institutional investors are calling upon members of Switzerland’s lower house of parliament to back legislation making it mandatory for Swiss companies to carry out human rights due diligence.
IPE: The EU’s sustainability “taxonomy” could help investors reduce analysis costs and reputation risks, according to a member of the technical expert group developing the classification system.
Institutional Investor: Asset owners expect environmental factors will become more pertinent to their investments than traditional financial criteria over the next five years, with more than 80 percent indicating it would be a “material risk” not to integrate ESG factors, UBS Asset Management said.
Pensions & Investments: Infrastructure — not unlike other asset classes — faces increased scrutiny from asset owners aiming to limit adverse impacts on the environment, including through investments that specifically target the United Nations' Sustainable Development Goals.