The National Employment Savings Trust has launched a search for a responsible ownership provider to ensure the scheme’s fund managers consider environmental, social and governance factors when they invest members’ money.
Nest will use external service providers to help deliver its responsible ownership policy. In the early stages of the scheme, the fund managers will carry out voting while the scheme’s in-house team and responsible ownership provider will monitor the fund managers’ voting relative to Nest’s voting policy.
Nest says at a “certain size” of scheme assets or after a “certain period of time” it may take control of detailed voting decisions and execution.
AWD Chase De Vere head of communications Patrick Connolly says monitoring ESG factors has become stand- ard practice in investment decision-making. He says: “I think it is a rational and sensible decision and it is exactly the sort of step you would expect Nest to be taking.”
The national scheme, which will launch in low volumes on a voluntary basis in October this year, has also started the recruitment process for chairs and initial members of employer and member panels.