Six UK local government pension schemes (LGPS) have committed £330m (€346m) to Schroders Greencoat to invest in renewables and energy-transition assets across the Southwest of England.
The unnamed pension funds are investing through the Brunel Pension Partnership, which manages £35bn of investments on behalf of LGPS funsd of Avon, Buckinghamshire, Cornwall, Devon, Dorset, the Environment Agency, Gloucestershire, Oxfordshire, Somerset and Wiltshire.
The mandate will target investments in the counties of Dorset, Somerset, Avon, Cornwall, Devon, Wiltshire, Oxfordshire, Buckinghamshire and Gloucestershire.
Schroders Greencoat will target investments in a wide range of renewable energy technologies, including in traditional sectors of solar and wind, and energy-transition sub-sectors such as battery storage and green hydrogen production.
Jennifer Devine, the head of Wiltshire Pension Fund, representing the fund’s LGPS partners, said: “We are thrilled to be involved in this collaboration with other LGPS funds. Together we can use our scale to make a substantial, widespread positive impact, actively investing in and benefiting from the transition to a low-carbon economy.
Peter Harrison, group CEO at Schroders, said: “Our LGPS clients want to meet their net-zero obligations and deliver tangible impact in their regions. At the same time, significant investment is required in the UK to meet its energy security and renewable infrastructure requirements now and in the coming years.”
Matt Ridley, partner at Schroders Greencoat, said: “Investing in renewable generation assets across Brunel’s constituent counties generates resilient cashflows for underlying investors and clean energy where their pension beneficiaries work and live.
“Schroders Capital has the scale and pipeline to replicate this model across the country, with investment opportunities across a range of technologies and scales. We’re very pleased to be working with Brunel and its partners again – our close relationship with them, which dates back to 2019, is key to making initiatives like this one possible.”
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