Schroders Greencoat has closed £330m in commitments from six Local Government Pension Schemes in the Brunel Pension Partnership.
Schroders Greencoat will invest in renewable infrastructure and energy transition assets in South West England, including traditional sectors like solar PV and wind, as well as innovative areas like battery storage and green hydrogen production.
The mandate covers counties in South West England and represents the largest commitment by UK local government pensions to local renewable energy infrastructure.
Schroders Greencoat oversees 2.8 GW of capacity, lowering annual carbon emissions by more than 2.6 million tonnes. This mandate, which supports UK government pension reform, makes use of Schroders’ impact investing expertise and partnership with local government pension plans.
Schroders group chief executive officer Peter Harrison says: “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.
“Tailored partnerships such as the one announced today provide a framework for how place-based investments can meet all of these challenges, and build on the Wales Pensions Partnership mandate we announced earlier this year, where there is a strong requirement to source local deals. Schroders is committed to playing a key role in this space.”
Wiltshire Pension Fund head Jennifer Devine says: “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. To be able to deliver this impact across the South West and support business and societies in greening their grid is fantastic. We’re delighted to be working with Schroders Greencoat again, and levelling up our impact across the region.”
Schroders Greencoat partner Matt Ridley says: “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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