A research foundation has moved more than a quarter of its total assets out of a global investment bank, after deciding the asset management firm was “incompatible” with its sustainability goals.
The Nesta Trust has completed the transfer of £120m from Northern Trust Asset Management to the European asset manager Amundi, as part of its commitment to reducing global greenhouse gas emissions.
The Nesta Trust manages the endowment that funds the research charity Nesta, an endowment that has grown from £260m in 2012 to £420m.
In a statement, the trust said the decision to move the £120m was a “direct consequence” of Northern Trust’s withdrawal from the United Nations-backed Net Zero Asset Managers Initiative, as well as from the investor group Climate Action 100+.
The trust said this followed a “growing wave of major US financial institutions retreating from collective climate action”.
It said: “Nesta Trust determined that maintaining funds with Northern Trust was incompatible with its mission to build a sustainable future, while Amundi has maintained its climate commitments, including membership of Climate Action 100+ and its signature of the NZAM initiative.”
Jenny Segal, chief investment officer at the Nesta Trust, said: “The economic risks of the climate crisis mean it is the duty of any asset manager to ensure their investments support climate action to protect the portfolio’s growth.
“Asset managers that step back from climate action initiatives risk compromising their stewardship and so we took the decision that Amundi was a better home for Nesta’s global equity investments.
“We hope that our disinvestment shows that asset owners do not have to silently accept a roll-back of climate commitments and that this shows others they can hold their fund managers to a high standard.”
Eric Bramoullé, chief executive of Amundi UK, added: “Responsible investment has been one of the cornerstones of Amundi’s strategy since the firm was founded.
“We are pleased to support Nesta in pursuing its investment objectives, both financial and non-financial.”
The Northern Trust Asset Management has not responded to Third Sector’s request for comment.