www.nesta.org.uk/press-release/nesta-trust-transfers-assets-from-northern-trust-to-amundi-to-ensure-investments-support-climate-action/
London, UK - The Nesta Trust has today announced it has completed its disinvestment from Northern Trust Asset Management and has transferred its £120 million passive global equity portfolio to European asset manager Amundi, as part of the Trust’s commitment to reducing global greenhouse emissions.
The move comes as a direct consequence of Northern Trust’s withdrawal from the Net Zero Asset Managers Initiative (NZAMI) and Climate Action 100+ (CA100+). This follows a growing wave of major US financial institutions retreating from collective climate action. Nesta Trust determined that maintaining funds with Northern Trust was incompatible with its mission to build a sustainable future, while Amundi has maintained its climate commitments, including membership of Climate Action 100+ and its signature of the NZAM initiative.
The Nesta Trust manages and governs the endowment that funds the UK research and innovation foundation Nesta’s activities. The endowment was established in 2012 with £260 million from the National Lottery. The endowment has increased since that initial investment and now stands at £420 million, with the £120 million portfolio managed by Amundi representing over a quarter of the Trust’s assets.
Jenny Segal, Nesta Trust chief investment officer, said: “The economic risks of the climate crisis mean it is the duty of any asset manager to ensure their investments support climate action to protect the portfolio’s growth. Asset managers that step back from climate action initiatives risk compromising their stewardship and so we took the decision that Amundi was a better home for Nesta’s global equity investments. We hope that our disinvestment shows that asset owners do not have to silently accept a roll-back of climate commitments and that this shows others they can hold their fund managers to a high standard.”
Eric Bramoullé, CEO of Amundi UK, said: “Clients are increasingly seeking to ensure that their assets are invested in a way that reflects their responsible investment commitments and supports the transition to a more sustainable economic system.
“Responsible investment has been one of the cornerstones of Amundi’s strategy since the firm was founded. Stewardship is central to that approach, as engagement and voting are among the main levers available to investors seeking to support the transition to a low-carbon economy alongside long-term financial performance. We are pleased to support Nesta in pursuing their investment objectives, both financial and non-financial.”
The Nesta’s Trust’s Investment Committee aims to maximise impact through active stewardship of its public equities, property investments with commitments to energy performance (EPC) improvements and loans with ratchets linked to Environmental, Social and Governance (ESG) targets. It also excludes investments in tobacco, controversial weapons and fossil fuels. The Committee believes that the collective action of asset owners and asset managers can affect global change via industry coalitions and, as part of this, has this month become a member of Investors for Purpose.
The Trust’s disinvestment from Northern Trust follows similar action last year from the New York City Pension Fund and a number of European pension funds, including Dutch pension funds PFZW and PME, Danish Pension fund AkademikerPension, which moved to re-bid and divest billions of mandates from major US managers, due to weakened climate engagement strategies.
Charlotte O’Leary, CEO of Investors for Purpose, said: “We recognise that asset managers are operating in an increasingly polarised environment, where balancing diverse client expectations on ESG is genuinely challenging, and not every step back from a climate commitment reflects a step back from climate risk management. That said, climate risk is investment risk, and the direction of travel matters. Investors for Purpose exists as a forum for exactly this kind of debate — a space where asset owners and asset managers can discuss and work towards genuine alignment, rather than talking past each other. We welcome Nesta as a new member and hope their decision prompts a wider conversation across the industry about how managers can navigate this pressure while still holding firm on the fundamentals of climate stewardship.”
Grace Hunt, senior network and engagement officer at ShareAction, said: "It's brilliant to see Nesta, a member of our Charities Responsible Investment Network, divest from Northern Trust over climate concerns. Asset owners going public about such shifts is a powerful way to further the influence of their decision and we encourage others to do the same."
Notes to editors
About Nesta
Nesta is a research and innovation foundation that designs, tests and scales solutions for the biggest challenges of our time.
Driven by a vision to improve the lives of millions of people, our focus up to 2030 is on three missions: breaking the link between family background and life chances, halving obesity and cutting household carbon emissions.
We work with partners to develop high-potential solutions and test them as they evolve, drawing on expertise in qualitative and quantitative research, data science, behavioural science and design.
Once confident in the effectiveness of a solution, we take it to scale. We create national policy proposals, develop consumer-facing products and services, build and spin out commercial ventures and harness the power of the arts.
We work with two specialised units: BIT applies a deep understanding of human behaviour to help clients achieve their goals. Challenge Works designs and runs challenge prizes to spark innovation in science, technology and society. Find out more at nesta.org.uk
