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Net Zero Pensions

Net Zero Pensions 29 July 2020

Nest: Millions of pensions to be net zero by 2050, as scheme plans to invest in green energy (via i News)

By Madeleine Cuff

Nest, the UK largest pension fund, has threatened to divest from high-carbon industries such as fossil fuels and meat production as part of a new target to become a net zero emissions scheme by 2050.

Nest manages the retirement savings of more than nine million people across the UK. The net zero target means their money will be moved from polluting industries into cleaner sectors, Nest said.

Net zero transition

Within three decades the UK is legally required to have transitioned to a net zero carbon economy, a shift that is expected to bring huge disruption to all sectors of the economy.

Safeguarding pensions during this transition will mean investing more in green energy and companies with stringent climate targets, while pulling cash from polluting firms with no plans to change, Nest said. This will help slow climate change while insulating its members – many of whom are young people highly concerned about the environment – from the financial risks of the transition.

“Just like coronavirus, climate change poses serious risks to both our savers and their investments. It has the potential to cause catastrophic damage and completely disrupt our way of life,” said Nest’s chief investment officer Mark Fawcett. “No-one wants to save throughout their life to retire into a world devastated by climate change.”

Read the full story here...