Nest signs principles for responsible investment

The national employment savings trust (Nest) has signed the United Nations-backed Principles for responsible invesment (PRI) framework.

Globally there are 930 signatories, 120 of which are UK-based. These include 26 asset owners.

As part of its commitment to responsible investment, Nest will exercise its voting rights via its fund managers and actively engage with its investee organisations in order to meet standards of good practice as set out within the PRI.

Nest has started to implement policies and processes in line with the PRI:

  • Formally assessing the capabilities of external investment managers to incorporate environmental, social and governance issues.
  • Procuring a specialist provider to address these environmental, social and governance issues through an engagement programme with investee organisations.
  • Procuring a specialist provider of environmental, social and governance data to help construct an internal risk model and identify risks in its investee organisations and sectors, prioritise its engagement efforts, and challenge fund managers on if and how they are addressing these risks and issues.

Mark Fawcett, chief investment officer at Nest, said: “Signing the PRI delivers on a commitment we made earlier this year when we announced our approach to investing members’ money.

“Nest believes that to protect and enhance the value of investments over the long term, it must act as a responsible asset owner and market participant.

“We also believe that investing responsibly enhances long-term value and reduces risk, and we have therefore embodied this view within our investment beliefs.”

Wolfgang Engshuber, chair of the PRI, added: “In coming years, Nest will become one of the most important asset owners in the UK pension fund industry, and we are delighted Nest has decided to become a signatory to the PRI.

“I believe Nest is leading by example in its commitment to implement the six PRI principles and look forward to Nest participating as an active member of this global UN-backed initiative.”

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