Greencoat Capital has won a mandate from the HSBC UK pension scheme to manage a £250m (€284.7m) commitment into UK renewable infrastructure assets.
The specialist asset manager said the allocation will be invested into large-scale solar and smaller onshore wind assets.
Richard Nourse, the managing partner at Greencoat Capital, said: “We’re delighted to be partnering with one of the country’s largest pension funds and helping to finance the implementation of the UK’s climate objectives.
“HSBC UK Pension Scheme has been at the forefront of responsible investment with a very large allocation to ESG factor equities through LGIM and now a significant push into low carbon real assets.”
Across its various funds, Greencoat has agreed to acquire, owns, and operates for long-term clients more than 40 wind farms and approaching 70 solar farms.
Mark Thompson, CIO of HSBC Bank Pension Trust UK, said: “We’re looking at new green opportunities because they make clear financial sense. Schemes such as ours want steady, inflation-adjusted income streams.
”Renewable infrastructure assets provide this return profile and are largely uncorrelated with traditional capital markets. Greencoat Capital are highly experienced managers in this sector and we look forward to building a long-term relationship.”
The pension scheme manages assets on behalf of 190,000 members.