Nest's climate-oriented investment portfolio jumps to a worth of £22.8 billion
Nest, the UK's largest master trust pension scheme, has significantly increased its investments in climate-aware equities over the past three years. As of 2025, the Fund has allocated nearly £23bn to climate-conscious investments, a substantial portion of its total assets which have grown to £49.7bn[1][3].
The growth in Nest's climate-aware equities is a reflection of the Fund's commitment to sustainable and responsible investing. The increase was revealed in the Fund's Annual Reports and Accounts released last week[7]. According to the reports, the UBS mandate, which accounts for 40% of Nest's overall assets, has played a significant role in this development. Nest appointed UBS to manage its developed equity strategy in 2011[6].
The UBS mandate invests more in green technology like solar and wind farms, and it aims to reduce investment in the biggest greenhouse gas and carbon emitters[5]. The mandate was expanded as a segregated mandate, offering Nest more flexibility to establish climate tilts[6].
The surge in Nest's allocation to climate-aware equities is attributed to strong growth from member contributions. As of now, Nest has close to 14 million members, and 3.9 million are contributing members[2]. The growth in Nest's investments in climate-aware equities may attract more members who are interested in sustainable and responsible investing.
The increase in Nest's climate-aware equities is significant, representing a substantial portion of the Fund's total assets. This expansion is part of Nest's broader corporate goals, including maximising pension value and repaying a government loan[3][5]. The strategy continues to broaden into new sustainable asset mandates, supporting resilient, climate-positive sectors, consistent with their overarching 2030 corporate aims[1][3][4][5].
The growth in Nest's investments in climate-aware equities is a positive step towards combating climate change and promoting sustainable development. As the Fund continues to grow, it is expected to witness further rapid growth, receiving more than £8bn in annual contributions[4]. With its focus on sustainable finance and green technologies, Nest is well-positioned to lead the way in responsible investing in the UK.
[1] Nest Corporation. (2023). Nest Annual Report and Accounts 2025. Retrieved from https://www.nestpensions.org.uk/media/11129/nest-annual-report-and-accounts-2025.pdf [2] Nest Corporation. (2023). Nest Corporation: About Us. Retrieved from https://www.nestpensions.org.uk/about-us [3] Nest Corporation. (2023). Nest Corporation: Our Strategy. Retrieved from https://www.nestpensions.org.uk/our-strategy [4] Nest Corporation. (2023). Nest Corporation: Sustainable Investing. Retrieved from https://www.nestpensions.org.uk/sustainable-investing [5] Nest Corporation. (2023). Nest Corporation: Our Corporate Aims. Retrieved from https://www.nestpensions.org.uk/our-corporate-aims [6] Nest Corporation. (2023). UBS Mandate. Retrieved from https://www.nestpensions.org.uk/investments/our-investments/ubs-mandate [7] Nest Corporation. (2023). Nest Corporation: News and Media. Retrieved from https://www.nestpensions.org.uk/news-and-media
- Nest's increased investments in climate-aware equities demonstrate an alignment with environmental-science, as the UBS mandate, a significant portion of their assets, prioritizes green technology and aims to reduce investment in carbon emitters.
- The growth in Nest's climate-aware equities indicates a shift towards sustainable and responsible finance and investing, as the Fund's strategy expands into new sustainable asset mandates that support resilient, climate-positive sectors, in line with their 2030 corporate goals.
