Nest claims firms have ‘not done enough’ on climate to remain shareholders, in move prompted by UBS Asset Management’s decision to eject firms from ‘climate aware’ fund
Government-backed pensions scheme Nest has divested from a string of carbon-intensive fossil fuel companies, including US oil major ExxonMobil and Canada’s Imperial Oil, citing concerns over their failure to adequately address climate impacts.
Announcing the move this morning, Nest said the five companies targeted by the action – which also include Korea Electric Power Corp, US exploration firm Marathon Oil and Hong Kong electric utility Power Assets – would not return to its portfolio until they demonstrated “clear progress in preparing for the low carbon economy”.
Nest’s share ownership in the five targeted firms amounted to around £40m as of June 2021.
The workplace pensions provider said it the divestment had been prompted by UBS Asset Management’s decision to remove holdings in the five energy companies from the ‘Climate Aware’ funds it manages for clients, including one fund it manages for Nest.