Responsible Investment
Responsible Investment
NESPF takes its role as a responsible investor very seriously. As a long term investor the Fund has a duty to engage with the companies we invest in on environmental, social and governance (ESG) issues, and to work with others to effect change on ESG issues.
Our Statement of Investment Principles can be viewed on our Policies & Statements page.
Climate
Learn more about climate disclosures, what we directly invest in, and biodiversity case studies.
Find out moreESG Initiatives
The Fund is a member of LAPFF and a signatory of PRI:
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Local Authority Pension Fund Forum
To enhance our governance strategy, the NESPF joined the Local Authority Pension Fund Forum (LAPFF) in April 2007. The LAPFF promotes the highest standards of corporate governance to protect the long-term value of local authority pension funds.
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Principles for Responsible Investment
To enable the Fund to be more global in its engagements, we signed up to the United Nations Principles for Responsible Investment (PRI) in August 2010. To date, over 5,000 organisations from all over the world, representing $121tr of assets under management, have signed up to the Principles.
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Signatory and Supporter of ESG Initiatives
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Climate Action 100+
Objective: Drive the world’s largest corporate greenhouse gas emitters to take action on climate change.
Key Commitments:
- Improve climate governance
- Reduce emissions
- Strengthen climate-related financial disclosures
Impact: Engaging with over 165 focus companies, representing a significant portion of global emissions, driving progress with 80% of focus companies setting an ambition to reach net-zero by 2050 or sooner.
Progress Updates:
- Engaged 600+ investors managing over $68 trillion in assets
- Secured significant emission reduction commitments
Click here for more.
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Carbon Disclosure Project - CDP
Objective: Operate a global disclosure system for environmental impacts.
Key Commitments:
- Address Climate change
- Curbing deforestation
- Ensure water security
Impact: Over 23,000 companies disclosed their climate data in 2023 showcasing emerging trends and growth across markets.
Progress Updates:
- Supported 740 investors with $136tn in assets
- Expanded disclosure to include biodiversity and oceans
- Launched plastics disclosure with nearly 3,000 companies representing $25tn in assets disclosing in 2023
- Backed the latest Science-Based Targets campaign, targeting 1.5°C-aligned SBT
- Conducted the Non-Disclosure Campaign, targeting 1,998 companies to improve transparency on data
Click here for more.
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Bangladesh Accord on Fire and Building Safety
The Fund is a signatory to the Bangladesh Accord, which was set up in 2013 in response to the Rana Plaza building collapse disaster (with deaths of more than 1,100 workers and injuring over 2,600 more). The Accord was set up for investors to engage with portfolio companies asking them to participate in the Accord on Fire & Building Safety.
Great progress has been made in over 1,600 factories and 2 million workers are safer because of important changes aimed at preventing dangerous fire, electrical and structural issues that threaten the lives of workers.
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ISSB's Climate Standard
Climate risks are increasingly having a real effect on companies and capital. Therefore, in response to calls for climate action at COP28, we support the establishment of market infrastructure to enable consistent, comparable climate-related disclosures at a global level. We are committed to advancing the adoption or use of the International Sustainability Standards Board's (ISSB) Climate Standard as the climate global baseline.
December 2023
The Fund has signed a statement focused on advancing the adoption or use of the ISSB’s Climate Standard as the climate global baseline.
COP28 marks the two-year anniversary since the ISSB was created.
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2022 Global Investor Statement
September 2022
The Fund has added its name to the 2022 Global Investor Statement. This statement is signed by 602 investors representing almost USD $42 trillion in assets under management.
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Voting
NESPF seeks to encourage the companies it invests in to operate the highest standards of corporate governance and corporate social responsibility. As a major long term shareholder, the main tools open to the Fund to use its influence is by the responsible exercise of its voting power and engagement on social and environmental factors with the companies in which it invests.
Find out more about voting