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Working for change together

Maintaining relationships with others allows Nest to share resources and knowledge.

To achieve positive change across our investments, and the markets and regulatory environments in which we operate, we work together with regulators, key stakeholders, partners and other organisations. This allows us to exert stronger influence and speak with one voice. So that we can be more effective when acting on issues that matter to our members.

Our key relationships

 

Here are just a few of the organisations we work with to drive positive change:

Financial Reporting Council (FRC)

We are signatories to the UK Stewardship Code (opens in a new window) which includes seven principles for good practice for owners of shares. As part of Nest’s commitment to the code we publish a  Statement of compliance (PDF) setting out how we adhere to the seven principles. We regularly engage with the FRC on issues of UK Corporate Governance and stewardship and are members of the climate and workforce reporting working group.

Principles for Responsible Investment

Nest is a signatory to the UN-backed Principles for Responsible Investment (PRI) (opens in a new window). The principles encourage consistent standards for responsible investment around the world.

30% Club

Nest’s a proud member of the 30% Club investor group. This is a movement that believes that 30 per cent is a reasonable initial target for representation of women on corporate boards. Evidence and analysis from diverse fields, such as organisational dynamics, social psychology and traditional financial analysis suggests that 30 per cent is where the contributions of a ‘minority’ group become valued. The 30% club will use its members combined power to demonstrate use of their ownership rights and undertake engagement with policy makers to encourage progress on gender diversity.

Social Impact Taskforce

Nest are active participants of the Social Impact Investment Taskforce  which was set up by the Prime Minister in June 2013. It aims to catalyse the development of the social impact investment market.

As part of the taskforce we investigated ways of creating faster rates of innovation within the financial service industry and developing products that will allow people the option to have their investment/savings used for social impact. 

We’re part of a smaller working group which is solely focused on the pension industry and which aims to implement the recommendations from the report on ‘making it easier to invest’.

Workforce Disclosure Initiative

Nest is a founding signatory to ShareAction’s Workforce Disclosure Initiative (WDI). This is a project seeking to improve company disclosure on how companies manage workers they directly employ and people working in their supply chains. We’ve helped ShareAction launch its inaugural WDI survey, which targets large globally listed employers. The survey aims to bring together key questions from mandatory reporting standards and voluntary reporting frameworks into a single consolidated survey.

Institutional Investors Group on Climate Change (IIGCC)

Being part of the IIGCC (opens in a new window)  keeps Nest updated on the developments in EU and international climate and energy policy. It also supports our work on climate risk and engagement. In 2015 we co-signed a letter to 60 high risk companies, asking them to disclose their positions on climate and energy policy and their lobbying activities.

Task Force on Climate-related Financial Disclosures (TCFD)

TCFD is a climate reporting framework spearheaded by Financial Stability Board chairman and Bank of England Governor Mark Carney. It encourages all organisations, including financial-sector organisations, to publicly disclose climate-related financial information so that investors and stakeholders can better understand the climate-related risks and opportunities they face. In 2018 we issued our first reporting statement in the scheme annual report and accounts. We will continue to develop our reporting within the TCFD framework over time.

Minerva Analytics

Our partnership with our proxy voting agent Minerva Analytics is instrumental to our voting process. Minerva help us develop voting policies that are progressive and aligned with our views on issues like diversity, climate change and audit. They also help us to oversee how our fund managers are voting our shares and flag issues for discussion ahead of AGMs.

Working with regulators and standard setters

We support good corporate behaviour by working with regulators and standard setters. Better standards across markets mean our members can benefit from higher standards in all the companies we invest in on their behalf.
We’ve engaged with regulators including the Financial Conduct Authority (FCA),Financial Reporting Council (FRC), the Department for Business, Energy and Industrial  Strategy (BEIS) the Department for Work and Pensions (DW).

Responding to consultations

As part of Nest's commitment to acting as a responsible asset owner and active market participant, we respond to relevant national and international consultations on issues such as corporate governance that have the potential to impact the investments we make on behalf of our members. We publish these responses as appropriate here.