Nest’s member assembly, which the pensions provider claims is a first for the industry, has led for calls from the scheme’s savers for more responsible investment practices, as well as more investment within the UK.
Members wanted Nest to pursue strong returns while also backing investments that created wider benefits for society and the economy. Examples included investing more money domestically, supporting infrastructure and affordable housing, backing clean energy and nature-positive initiatives, and using ownership rights to push companies to improve on issues such as pay, human rights, and responsible business practice.
However, the principle for Nest to provide responsive and regular consultation and should respond quickly to changing circumstances such as the Israel conflict was rated as the least important among members during the assembly. Most valued was full transparency over investment decisions.
A recurring message from the assembly was that members wanted a more meaningful role in shaping how Nest listens and responds. Examples included holding future member assemblies, reconvening the assembly to review progress, and exploring the concept of a member council linked to the Nest board. Members also set out principles for good participation, including transparency, accountability, diversity, accessibility, and impact.
Ian Cornelius, chief executive of Nest, says: “This report marks an important moment for the scheme and for our wider conversation with members about the future of pension saving. What comes through clearly in this report is that members want their pension savings to work hard for their future, but they also want to understand more about how decisions are made and how their voices can be heard.”
Nest has pledged to publish a written response later in the year which will address each recommendation in the report issued following the assembly, explaining clearly and transparently the decisions it takes and the reasoning behind them.
The member assembly took place over two weekends, January 31–February 1 in Manchester and February 14–February 15 in London. A total of 52 members took part in the assembly, with Shared Future and the Sortition Foundation used by Nest to ensure the selection was representative and reflected the diversity of membership in factors such as age, gender, income, and geography.
Nest is a pension scheme with 14 million UK members with a collective £60bn in assets under management.