Border to Coast Powers Up Climate Action with £1.2 Billion Funding Boost
Border to Coast Pensions Partnership (Border to Coast), the manager of a significant pool of capital on behalf of UK local government pension funds, has announced a major new commitment to climate investing. The organization has secured an additional £1.2 billion (approximately €1.4 billion or $1.5 billion) in commitments, nearly doubling the size of its dedicated climate investment program.
This significant investment builds upon Border to Coast's existing £1.4 billion raised in 2022 for climate-focused opportunities. This brings the total dedicated capital under the Border to Coast private markets program to a substantial £16 billion, representing a powerful commitment from UK pension funds towards a sustainable future.
Investing for a Greener Tomorrow
Border to Coast's climate opportunities program is spearheaded by Imraan Mohammed, a recognized leader in the field of industrial decarbonization. This latest funding injection empowers Border to Coast to partner with leading private equity and infrastructure funds pursuing strategies across growth equity, infrastructure development, and private credit – all with a focus on accelerating the transition to a low-carbon economy.
Imraan Mohammed, Head of Climate Opportunities at Border to Coast, commented, "We are thrilled by the strong support from our investor base. This additional capital allows us to significantly expand our reach and make an even greater impact on the fight against climate change. By investing in innovative companies and projects, we can create a more sustainable future for our beneficiaries and generations to come."
Border to Coast: A Model for Institutional Investors
Border to Coast's success story underscores the growing importance of climate investing within the institutional investment landscape. As the global community grapples with the urgency of climate action, responsible investors are increasingly seeking opportunities to align their financial goals with positive environmental impact.
Border to Coast's approach, with its focus on a diversified private markets strategy, serves as a valuable model for other institutional investors seeking to make a meaningful contribution to a sustainable future. Their commitment demonstrates that strong financial returns can go hand-in-hand with environmental responsibility.
Although the press release doesn't give specific details about the targeted investments within the £1.2 billion climate focus. However, we can make some educated guesses based on Border to Coast's past pronouncements and the broader climate investing landscape:
Renewable Energy: Investments in companies developing or deploying clean energy solutions like solar, wind, geothermal, or biomass could be a target area.
Energy Efficiency: Funding could flow towards companies developing energy-efficient technologies for buildings, appliances, or industrial processes.
Sustainable Infrastructure: Border to Coast might invest in projects related to smart grids, energy storage solutions, or sustainable transportation infrastructure (e.g., electric vehicle charging networks).
Circular Economy: Companies or projects focused on reducing waste and promoting resource efficiency through recycling, upcycling, or innovative material science could be attractive.
Sustainable Agriculture and Land Management: Investments might target companies developing climate-resilient agricultural practices, reducing carbon emissions from agriculture, or promoting sustainable forestry practices.
Possible Areas of Investment (based on past reports and industry trends):
Climate Opportunities Report 2023: While specific details of investments aren't provided, their Climate Change Report (March 2023) mentions a total of £8.3 billion invested in climate solutions. This suggests prior investments alongside the new £1.2 billion.
Case Studies: The report mentions a few examples of their climate-related investments, including:
Hy24's €2 billion Clean Hydrogen Infra Fund (focuses on clean hydrogen value chain)
Gresham House Energy Storage Fund (invests in utility-scale battery storage systems)
Additional Resources:
Border to Coast's website might have more information on their investment philosophy and past reports: https://www.bordertocoast.org.uk/wp-content/uploads/2023/01/Border-to-Coast-Climate-Change-Policy-2023-1.pdf
Looking Forward
With this additional capital, Border to Coast is well-positioned to play a leading role in driving the transition to a low-carbon economy. By supporting innovative companies and projects across various sectors, Border to Coast's investments can not only generate positive returns for its beneficiaries but also contribute to a greener and more sustainable future for all.
