Legal & General Investment Management (LGIM) has entered a £25m (€29.8m) debt transaction with the National Trust to help the UK charity and conservation body fund renewable-energy projects on its estates.
LGIM said it will invest in the next generation of renewable-energy hydroelectric and solar generation projects as part of the National Trust achieving net zero across its estate by 2030.
The National Trust, founded in 1895, cares for more than 250,000 hectares of countryside, 780 miles of coastline and 500 historic properties, gardens and nature reserves, across England, Wales and Northern Ireland.
The investment follows the launch of the Legal & General Future World ESG Developed Fossil Fuel Exclusions Index Fund, developed in collaboration with the charity. The fund aims to provide an efficient, low-cost way for investors to reduce their exposure to fossil fuel companies and those with high carbon emissions and reserves while targeting long-term, sustainable returns.
Dabinder Hutchinson, director of finance at the National Trust, said: “The National Trust is delighted to raise £25m from LGIM to fund the next phase of our hydroelectric and solar renewable-generation projects. As Europe’s largest conservation charity, decarbonising our estate and transitioning to more sustainable forms of energy is hugely important for us.
“On top of our own ambitions, the need to achieve net zero is a worldwide concern and we hope that the development of more climate-friendly investment portfolios will support others in the sector to have more options when it comes to their investment strategies.”
Steve Bolton, head of corporate private debt at LGIM, said: “We’re delighted to strengthen our relationship with the National Trust and support them in achieving their net-zero and sustainable-energy goals.
“LGIM and the National Trust have a long history of collaboration and this new investment is a great example of how charitable funds can be invested in a socially and economically useful way, driving positive long-term outcomes.”
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