A research and innovation foundation has moved £120m, more than a quarter of its assets, out of a bank after deciding it is incompatible with its sustainability goals.
Nesta Trust announced today that it had transferred the sum from Northern Trust to Amundi as part of its commitment to reduce carbon emissions.
The Nesta Trust, which manages and governs the endowment that funds research and innovation charity Nesta, said in a statement today its decision was a “direct consequence” of Northern Trust recently withdrawing from two global climate initiatives.
Northern Trust stepped away from investor group Climate Action 100+ and the United Nations-backed Net-Zero Asset Managers initiative in January last year, according to ESG Dive.
Jenny Segal, Nesta Trust chief investment officer, said: “Asset managers that step back from climate action initiatives risk compromising their stewardship.
“We hope that our disinvestment shows that asset owners do not have to silently accept a roll-back of climate commitments.”
Nesta Trust was established in 2012 with £260m from the National Lottery. It has since increased its portfolio value to over £420m.
Its endowment provided £17.3m of investment income in the year to 31 March 2025, while the trust spent £35.8m overall, almost all of which went to Nesta.
Northern Trust has not yet responded to a request for comment.
Charities have precedent to prioritise ethical outcomes
Nesta Trust said the move was made following a “growing wave” of major United States financial institutions retreating from climate action.
In its statement, Nesta Trust said it had also excluded investments in tobacco, “controversial” weapons and fossil fuels.
Charities in the UK were given precedent to prioritise the ethical outcomes of their investments after the Butler-Sloss court ruling in 2022.
In April of that year, the High Court ruled that charities could use their investment portfolios to fight climate change even if this excluded investing in a large part of the market.
The ruling prompted the Charity Commission to publish renewed guidance which gave trustees “confidence to make investment decisions that are right for their charity”.
Last year, social entrepreneurs' charity UnLtd announced it would move to invest its £175m endowment on a mission-aligned basis.
