UK DC provider Nest has committed £5bn to a global equity fund following an energy transition theme.
The £36bn workplace pensions provider has selected an actively managed strategy by Lombard Odier Investment Managers which will focus on climate change mitigation and adaptation, natural capital and social trends for a thriving society.
The £5bn investment will be deployed over the next six years.
Liz Fernando, CIO at Nest, commented: “Lombard Odier was the stand-out candidate in the procurement process, demonstrating they can take a dynamic approach to portfolio construction. They have robust sustainability research capabilities, accompanied with a strong investment process and governance, that gives us every confidence this will be a hugely successful partnership.”
Nest is backed by the UK government and is the largest workplace pension scheme in the UK, serving more than 12 million members. This means that it receives more than £540m in contributions each month, resulting in the rapid growth of its assets. Some 99% of its members are invested in the default strategy.
Nest has pledged to be net zero by 2050 including an interim 2025 target of a 30% reduction in Scope 1 and Scope 2 emissions intensity in its listed equity and corporate bonds from a 2019 baseline.
