Schroders Capital’s infrastructure team in Asia has achieved first close of its second China renewable-energy strategy, following a $100m (€90m) anchor investment commitment from technology giant Apple.
The strategy targets renewable-infrastructure investments in wind and solar assets across China, that are in late-stage development and construction, “aiming to deliver attractive risk-adjusted financial returns” for clients, Schroders said.
With this anchor investment from Apple, the strategy aims to add approximately an annual 550,000MWh of new wind and solar energy generation to China’s electrical grid, the manager said, adding that this generation is expected to grow as additional clients invest in the strategy.
In addition to contributing to a cleaner power grid in China, the strategy will help advance Apple’s ambition to achieve carbon neutrality across its entire carbon footprint by 2030, including its supply chain and product life cycle.
This China renewable-energy strategy is modelled after the successful first China clean-energy strategy, which was launched in partnership with Apple and its suppliers in 2018.
Schroders Capital said the first strategy “has already exceeded its target of building more than 1GW of wind and solar projects”. The portfolio includes 17 wind farms generating 998MW of wind capacity and 30 solar projects generating 229MW of solar capacity.
Yuyu Peng, head of China renewable infrastructure, Schroders Capital Infrastructure Asia, said: “This second strategy continues to demonstrate the critical role our clients can play in supporting the energy transition and the growing importance of actively managed investment solutions in this space.
“Schroders Capital’s renewables team is one of the largest pure-play energy transition infrastructure managers globally, and our team in China has extensive experience of the market and policy environment. This second strategy continues to underline our commitment to Asia-Pacific and working as a trusted partner on behalf of our clients.
“China is now the largest country in the world for installed renewable-energy generating capacity. This will continue to create investment opportunities which help to accelerate our clients’ decarbonisation targets while delivering resilient cash flows.”
Richard Oldfield, group chief executive, Schroders, said: “China has long been an important strategic focus for Schroders; we were among the first international asset managers to enter mainland China and have been actively engaged with the domestic market for over 30 years.
“The combination of decades of global active investment experience alongside the international and local knowledge of our renewables team is a powerful proposition. It supports the creation of innovative investment solutions and delivery of stable returns to our clients.
“This new strategy reinforces our commitment to Greater China and underscores our role as a trusted active management partner.”
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