Nest to invest millions in British green energy

17 March 2021

Nest, the automatic enrolment scheme managing the pensions of nearly a third of the UK workforce, has appointed Octopus Renewables, part of Octopus Group, to boost its investment in clean energy infrastructure.

Octopus Renewables is the largest investor of utility scale solar power in Europe, as well as a leading UK investor in onshore wind and biomass, managing a global portfolio valued at more than £3 billion.

It invests in and manages a diverse portfolio of technologies, including several rooftop solar assets in Manchester and Birmingham, and wind farms in South Lanarkshire and Northamptonshire

Nest, which currently manages more than £16bn of UK pension savings, is investing directly in green energy generation to secure stable, long term returns for its pension savers while helping achieve its ambition of becoming a net-zero carbon investor.

Mark Fawcett, Nest’s Chief Investment Officer, believes investing the pensions of the UK workforce in renewable infrastructure at home and abroad is a win-win for all involved:

“We want to invest in the energy of the future, not the past. The money we manage on behalf of our members needs to provide steady returns for the next 10, 20, 30 years.

“Renewable energy projects are fantastic opportunities. Every new site provides greater energy security, increases potential returns and contributes to tackling the climate emergency. We want to deliver bigger pensions for our members, in a better world.

“All minds are focused on how to help Build Back Better from the pandemic and this move means millions of UK pension savers will be playing their part.

“Investing in British green energy means our members will be investing in projects they can see and touch, a tangible connection to their pension and a way out of the climate crisis. The strong foundations of this kind of investment should help them achieve great returns for their future while directly investing in the future of the planet.”

Research shows that most people want their pension to be invested in a way that tackles climate change. Survey data conducted by YouGov (July 2020) among 2,010 UK adults, of which 1,183 are saving into at least one pension, showed:

• 4 out of 5 adults (79%) believe it’s important the economic recovery from coronavirus should take climate change into account.
• 65% of pension savers believe their pension should be invested in a way that reduces the impact of climate change. Just 4% strongly disagreed.
• More than half of all adults (57%) are worried about the impact of climate change on their lives.

Source: NEST