ESG spotlight: A roundup of the latest news on environmental, social and governance initiatives, with Aegon investing £3bn of its default funds in ESG, and the National Pension Trust shifting its default arrangement towards a green strategy.
Aegon commits £3bn in BlackRock ESG range
Aegon is investing £3bn of its default funds into a range of ESG index funds launched by BlackRock. The companies worked together on the iShares range, which includes six ESG equity income index funds that track Morningstar’s regional and country-specific indices. The change means that ESG exposure in the Aegon workplace default fund will double to 60 per cent for members in the growth stage of their retirement savings, and rise to 40 per cent for those in retirement. A number of other Aegon default funds will also use the new BlackRock vehicles. The indices target a 30 per cent reduction in carbon emissions intensity, and apply exclusions to certain sectors such as tobacco, nuclear weapons, alcohol, porn and gambling.
This article first appeared on FTAdviser.com
National Pension Trust adopts sustainable strategy
The National Pension Trust is shifting its default fund strategy to include ESG principles. The XPS Pensions Group master trust, with 44,000 members and £978mn in assets, will have an ESG-oriented default arrangement that will focus on climate change and the carbon transition, while aligning with a 2C investment policy, it said. NPT will work with State Street Global Advisors, the Transition Pathway Initiative, and Legal & General Investment Management to align its portfolio with the goals of the Paris Agreement and inform its investment research.
