Nest vows to vote against executives scaling back climate ambitions

Nest, the UK’s largest master trust, is set to vote against the reappointment of board chairs if their companies have “materially scaled back” their climate policies, the pension fund said.

The move means that Nest could now oppose the reappointment of a number of executives during the 2026 AGM season. The pension fund announced the policy as it released its updated voting guidelines.

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Commenting on the changes, Diandra Soobiah, director of responsible investment at Nest, said the move builds on the fund’s existing approach.

“We have engaged — and, where necessary, voted against — companies that weaken their climate plans and do not provide adequate transparency to shareholders. We also expect companies to put material changes to their climate strategy or transition plan to a shareholder vote.”

“The update sets out more clearly how Nest evaluates significant changes to climate-related targets, investment plans or transition timelines, and reinforces its expectation that companies maintain credible, transparent transition strategies. Where adjustments are made, boards are expected to provide clear and evidence-based justification to shareholders,” the pension fund said.

Nest’s change in strategy comes as a growing number of major corporations have scaled back their climate ambitions. Tech firms such as Microsoft now acknowledge that the rise of AI has made it harder to meet their net-zero emissions targets, while oil and gas giants including BP, Shell, ExxonMobil and Chevron have doubled down on fossil fuel extraction. Banks also continue to underwrite the fossil fuel industry.

Meanwhile, the SEC’s decision to step back from overseeing most “no-action requests”, and changes to UK AGM rules, have made it harder for shareholders to file resolutions challenging companies on climate issues.

Earlier this week, energy giant BP released its Notice of Annual Meeting, excluding a climate resolution filed by a campaign group. Following this, investors now plan to challenge the exclusion in court.

Last year, BP also effectively prevented shareholders from criticising its climate policies by announcing a major change to its energy transition strategy after the deadline for filing shareholder resolutions had passed. Investors, including Nest, subsequently voted to oppose the reappointment of BP chair Helge Lund. His reappointment was opposed by nearly a quarter of BP shareholders. Lund had already announced his intention to resign prior to the AGM.

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