UK pension fund to vote against boards backpedaling on climate
UK pension giant Nest will now vote against board chairs where the company they oversee has materially scaled back its climate commitments without explanation.
Updating its voting policy, Nest said where adjustments are made to transition strategies, boards are expected to provide clear and evidence-based reasoning to shareholders. It said it will now be more explicit in its voting approach to support constructive dialogue with companies.
Nest director of responsible investment Diandra Soobiah said the update builds on the existing approach and that the fund has previously voted against boards that have not been transparent with investors. She said Nest also expects all companies to put significant changes to climate strategy or transition planning to a shareholder vote.
“We believe being explicit about how we evaluate these issues supports constructive dialogue with companies. Clearer guidance gives boards greater certainty about how we will approach our voting decisions,” Soobiah said.
“Our priority remains safeguarding our members’ long-term interests by encouraging responsible management of climate-related risks.”
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