National Employment Savings Trust, London, shifted about £200 million ($261 million) between BlackRock sterling cash funds, a spokesman confirmed.
In December, NEST moved the money to BlackRock's ICS Sterling Liquid Environmentally Aware Fund from the firm's Aquila Connect Cash Fund.
The move reflects NEST's policy, announced in June, aimed at excluding tobacco companies across its investments. BlackRock's ICS fund excludes companies involved in fossil fuels, civilian firearms and tobacco.
The £10 billion multiemployer U.K. defined contribution plan has 6.5% of its assets allocated to cash, which is split almost equally between BlackRock and Amundi.
Amundi manages 3.2% of NEST's cash via its sterling fund, Amundi Money Market Fund.
"Assessing ESG factors when investing sheds light on how adaptable a company or industry is and how sustainable it will be in the years to come. We believe it helps achieve stronger long-term, risk-adjusted returns," CIO Mark Fawcett said in a news release.
"We welcome new ways to better meet our needs as investors and commend BlackRock for offering this innovative approach. It is important that fund managers step up and show their commitment to responsible investment," Mr. Fawcett added.