Public HTML RI reports - PRI reporting framework 2020

National Employment Savings Trust (NEST)

PRI reporting framework 2020

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - HF 01]

Strategy and Governance

Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

Yes

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

Policy setting out your overall approach

Formalised guidelines on environmental factors

Formalised guidelines on social factors

Formalised guidelines on corporate governance factors

Fiduciary (or equivalent) duties

Asset class-specific RI guidelines

Sector specific RI guidelines

Screening / exclusions policy

Engagement policy

(Proxy) voting policy

Other, specify (1)

Other, specify(2)

Applicable policies cover all AUM

Applicable policies cover a majority of AUM

Applicable policies cover a minority of AUM

01.3. Indicate if the investment policy covers any of the following

Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

Your investment objectives that take ESG factors/real economy influence into account

Time horizon of your investment

Governance structure of organisational ESG responsibilities

ESG incorporation approaches

Active ownership approaches

Reporting

Climate change

Understanding and incorporating client / beneficiary sustainability preferences

Other RI considerations, specify (1)

Other description (1) We have high level guidelines on banking culture and conduct, fair pay and audit.

Other RI considerations, specify (2)

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

We believe our members benefit from having an in-house investment team to look after their money. We don't hand over responsibility for the most important investment decisions to another organisation.

We carefully spread our members’ money over diverse investments from around the world using funds from leading fund managers. We select and build relationships with fund managers who take a serious committment and approach to Responsible Investment.
We believe an important part of growing members’ money is investing it responsibly and sustainably. This means including how the companies and economies we invest in are run, and their impact on people and the planet, in our investment processes.

We have clear investment objectives and beliefs that set out what we want to achieve for members and how we’re going to achieve it. One of those beliefs is that as long-term investors, incorporating environmental, social and governance (ESG) factors is integral to the investment management process which is also part of meeting our fiduciary duties to members.

We aim to be transparent and report back on how we’re doing through things like our fund factsheets and voting reports.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

01.6. Additional information [Optional].

SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

Policy setting out your overall approach

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/NestWeb/public/whatisnest/contents/Responsible-investment.html

Attachment (will be made public)

Formalised guidelines on environmental factors

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/NestWeb/includes/public/news/NEST-reponds-to-climate-change.html

Attachment (will be made public)

Formalised guidelines on social factors

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment.html

Attachment (will be made public)

Formalised guidelines on corporate governance factors

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment.html

Attachment (will be made public)

Fiduciary (or equivalent) duties

URL/Attachment

URL

URL https://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/statement-of-investment-principles.html

Attachment (will be made public)

Asset class-specific RI guidelines

URL/Attachment

URL

Attachment (will be made public)

Attachment

Sector specific RI guidelines

Screening / exclusions policy

URL/Attachment

URL

URL https://www.nestpensions.org.uk/schemeweb/NestWeb/includes/public/docs/Controversial-weapons-policy-2017,PDF.pdf

Attachment (will be made public)

Engagement policy

URL/Attachment

URL

Attachment (will be made public)

Attachment

Nest UK voting and engagement standard_Feb 2020_ Final.docx

(Proxy) voting policy

URL/Attachment

URL

Attachment (will be made public)

Attachment

Nest UK voting and engagement standard_Feb 2020_ Final.docx

We do not publicly disclose our investment policy documents

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/NestWeb/public/whatisnest/contents/Responsible-investment.html

Attachment

Your investment objectives that take ESG factors/real economy influence into account

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/NestWeb/includes/public/docs/Objectives-and-principles-for-investing-responsibly,PDF.pdf

Attachment

Time horizon of your investment

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment.html

Attachment

Governance structure of organisational ESG responsibilities

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/statement-of-investment-principles.html

Attachment

ESG incorporation approaches

URL/Attachment

URL

URL https://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment.html

Attachment

Active ownership approaches

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/NestWeb/includes/public/docs/voting-policy,PDF.pdf

Attachment

Reporting

URL/Attachment

URL

URL http://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment.html

Attachment

Climate change

URL/Attachment

URL

URL https://www.nestpensions.org.uk/schemeweb/nest/nestcorporation/news-press-and-policy/press-releases/nest-reponds-to-climate-change.html

Attachment

Other RI considerations, specify (1)

Other description (1) We have high level guidelines on banking culture and conduct, fair pay and audit.

URL/Attachment

URL

URL https://www.nestpensions.org.uk/schemeweb/nest/aboutnest/investment-approach/responsible-investment/NEST-areas-of-focus.html

Attachment

We do not publicly disclose any investment policy components

02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

Yes

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

For the NEST scheme the primary areas where the potential for conflicts to arise are:

Voting and engaging on matters affecting one of our corporate clients or prospective clients using or planning to use NEST to fulfil their automatic enrolment duties

Engaging with UK Government and regulatory bodies on issues relating to the activities and regulation of UK businesses, and our role as an NDPB with financial backing from the UK Government.

Investment in Government securities, such as gilts or infrastructure projects.

In order to manage conflicts NEST has a clearly articulated statement of how it will act as an institutional investor in the form of NEST’s voting and engagement policy. This policy is reviewed every three years, and approval for any changes is strictly the responsibility of NEST’s Investment Committee. Decisions about voting and engagement activity are agreed within the Investment Team. Influence on these activities from other areas of NEST is not permitted – in particular there is no oversight or input from those parts of NEST with responsibility for client relationships and client acquisition.

The voting and engagement policy and our voting records are published on NEST’s website each quarter.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios (Private)

Previous Section Next Section