State-backed pension scheme Nest will divert nearly half of workers’ cash into green investment strategy

By Paul Homewood



State-backed pension provider Nest is to plough £5.5billion, nearly half of its 9million members’ money, into a climate-friendly investment strategy.

Nest’s goal is to halve carbon emissions generated by its investments by 2030 and reach ‘net zero’ by 2050.

It will also ditch companies involved in thermal coal, oil sands and Arctic drilling within five years, unless they plan to phase out such activity.

‘No-one wants to save throughout their life to retire into a world devastated by climate change,’ says Mark Fawcett, chief investment officer of Nest.

Nest recently backed the Make My Money Matter campaign, launched by celebrity film director Richard Curtis and ex-Bank of England governor Mark Carney, which is urging pension funds to invest the £3trillion in UK retirement pots to take on climate change.

Carney has previously warned pensions funds and other businesses risk seeing assets become ‘worthless’ unless they wake up to the climate crisis.

Nest was set up by the Government for workers and employers when it launched pension auto enrolment in 2012, and it currently looks after the retirement funds of one quarter of the UK’s working population.


This is really a quite appalling misuse of pension savings money.. It is the prime function of any pension scheme trustee to maximise returns for members, not to play green virtue signalling.

As for the comment “‘No-one wants to save throughout their life to retire into a world devastated by climate change”, does this idiot actually believe that what NEST, or even the UK as a whole, does will make the slightest difference to UK weather?

Nest, or the National Employment Savings Trust, was set up in late 2012 alongside the Government’s auto-enrolment initiative which forces all employers to set up workplace pension schemes.

This was because a state-funded provider was needed for employers which either couldn’t or didn’t want to contract out their pension business to a big insurer or set up a trustee-run scheme of their own.

Unlike public sector workers who get guaranteed salary related pensions, NEST’s savers’ pensions depend on the value of their pension pot at retirement. I suspect many will be unimpressed if their pensions are lower as a result of this decision.


August 3, 2020 at 08:54AM

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s