Nest's climate-conscious equity holdings more than double to reach a value of £22.8 billion
Nest's Climate-Aware Equity Investments Soar
Over the past three years, UK master trust Nest has seen a significant increase in its investments in climate-aware equities. As of March 2025, the total value of these investments stands at nearly £23 billion, up from £12.6 billion in 2022.
This growth is a reflection of Nest's commitment to sustainable and responsible investing. The surge in its allocation to climate-aware equities is driven by a combination of factors, including strong growth from member contributions and a significant increase in its overall assets.
Nest's current climate-aware equity strategy involves a significant and growing allocation to climate-focused investments. The UBS mandate, which accounts for 40% of Nest's overall assets, has been expanded as a segregated mandate, offering Nest more flexibility to establish climate tilts. This mandate aims to reduce investment in the biggest greenhouse gas and carbon emitters and invest more in green technology like solar and wind farms.
The growth in Nest's investments in climate-aware equities may have implications for the fund's overall performance and risk profile. However, Nest's Chief Investment Officer Elizabeth Fernando has emphasized that climate change is a systemic risk that must be integrated into investment strategy. This approach is essential for ensuring long-term retirement security.
Nest's membership has also been growing steadily, with close to 14 million members as of March 2025. The scheme receives more than £8 billion in annual contributions, putting it on track for further rapid growth.
While the details of Nest's partnership with UBS are not explicitly detailed, the organisation's increasing emphasis on sustainable finance and bold partnerships aligns with industry trends and major collaborations promoted at events like the NEST Climate Campus and through sustainable finance channels.
In conclusion, Nest's climate-aware equity investments have almost doubled from £12.6 billion in 2022 to £22.8 billion in 2025. This strategy supports growth in assets under management, contributing to Nest’s first recorded profit and on-time government loan repayment trajectory. Leadership recognizes climate change as a systemic financial risk, embedding sustainability at the investment level. While more specific details on the UBS partnership or its exact impact on the strategy may require further targeted information, Nest's approach to sustainable finance is a key part of its long-term strategy and commitment to its members.
- The surge in Nest's climate-aware equity investments, driven by various factors, has led to a significant portion of its assets being allocated to environmental-science related projects, such as solar and wind farms.
- As Nest continues to prioritize sustainable and responsible investing, it is also exploring opportunities for investment in other sectors that address climate-change, with a focus on long-term financial gains and the overall well-being of its members.
