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
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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 Science-Based Targets campaign, targeting 1.5°C-aligned SBT
- 2024 Non-Disclosure Campaign was supported by 276 signatories (US$21 trillion in assets), targeting a record of 1,998 non-disclosing companies. More information on the 2024 campaign can be found here
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Bangladesh Accord on Fire and Building Safety
Objective: Enhance fire and building safety in Bangladesh’s garment industry, protecting human rights and to ensure a safe working environment.
Key Commitments:
- Safety inspections
- Training programs
- Hazard remediation
Impact: Improved safety in 1,000+ factories, benefiting 2 million workers.
Progress Updates:
- Inspected and upgraded over 1,600 factories in Bangladesh
- Commenced Safety Committee and Safety Training program for over 10,000 committee members
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International Sustainability Standards Board (ISSB)
Objective: Develop global sustainability disclosure standards for investors.
Key Commitments:
- Create global consistent corporate sustainability data
- Ensure compatibility with local disclosures
Impact: Established consistent, comparable sustainability reporting standards.
Progress Updates:
- Ongoing commitment to IFRS S1 and IFRS S2 standards
- Gained support from G7, G20, and 40+ jurisdictions
- ISSB has published a workplan for 2024-2026
The Fund signed the statement, co-developed by the PRI, London Stock Exchange Group and United Nations Sustainable Stock Exchanges Initiative, calling on relevant authorities across jurisdictions to adopt the ISSB standards by 2025.
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Global Investor Statement
Objective: Advocate for government action addressing the climate crisis and a just transition to net-zero.
Key Commitments:
- Economy-wide policies
- Sectoral strategies
- Climate-related disclosures
Impact: Signed by 651 financial institutions and their representatives managing almost $34 trillion USD in assets under management.
Progress Updates:
- Called for ambitious NDCs ahead of COP30
- Pushed for policies to unlock private capital for climate solutions
We are pleased to announce that we have signed the 2024 Global Investor Statement to Governments on the Climate Crisis. Investors recognise that policy mechanisms are essential to achieve a net zero emissions economy by 2050 or sooner, with interim targets in line with credible 1.5°C pathways.
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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