Nest's climate-conscious equity investments surge to £22.8 billion, marking a doubling of their initial portfolio.
Nest's Climate-Conscious Investments Surge
Nest, the UK's largest master trust, has seen a significant increase in its investments in climate-aware equities over the past three years. According to the Fund's Annual Reports and Accounts released last week, Nest's allocation to these equities has surged, growing from £12.6 billion to nearly £23 billion.
This increase is attributed to a stark increase in the overall assets of the fund, which have grown from £29.6 billion in 2022 to £49.7 billion in 2025. The UBS mandate, which aims to reduce investment in the biggest greenhouse gas and carbon emitters and invest more in green technology like solar and wind farms, currently accounts for 40% of Nest's overall assets.
Nest appointed UBS to manage its developed equity strategy in 2011, and the relationship has proven fruitful. The climate-aware equity investments managed by UBS have grown substantially, currently standing at £22.8 billion. This represents 40% of Nest's total assets, signalling a significant shift in institutional capital allocation towards climate-aware equities.
The surge in Nest's investments in climate-aware equities occurred due to strong growth from member contributions. With close to 14 million members, 3.9 million of whom are contributing members, Nest is in track to witness further rapid growth as it receives more than £8bn in annual contributions.
This strong growth trajectory indicates that Nest is prioritizing climate-conscious investment strategies within its equity portfolio. The UBS mandate's current size and proportion suggest sustained future growth in line with increasing institutional demand for climate-aware assets.
[1] Nest's Annual Reports and Accounts 2025 [2] UBS's Sustainable Investing Solutions
[1] The surge in Nest's climate-aware equity investments, now nearly £23 billion, is outlined in the Nest's Annual Reports and Accounts 2025.
[2] To cater to this growth, Nest invested in UBS's Sustainable Investing Solutions, with climate-change focused environmental-science equities making up 40% of Nest's total assets. Furthermore, Nest's strategic financial decision to invest in this area indicates a broader trend of institutional financing moving towards environmentally responsible investments.
