In a Climate Emergency, Southwark Pension Fund commits to investing £65m in BlackRock Real Assets and Temporis funds

1 July 2019

Southwark Council confirmed last week (28 June) that the Southwark Pension Fund will invest £65m into two new renewable energy funds, £35m with BlackRock’s Global Renewable Power Fund III and £30m with Temporis Operational Renewable Power Strategy.

Once fully implemented the Fund will have achieved the current target for 5 per cent of the Fund to be invested in sustainable infrastructure assets. When combined with other investment changes the fund’s carbon footprint will have been reduced by almost 50 per cent since 2017.

Cllr Victoria Mills, Cabinet Member for Finance, Performance & Brexit commented: “We are very pleased to have invested part of our pension fund with Blackrock and Temporis. We believe that climate change presents a long term financial risk to our fund and our members. We have committed to divest from fossil fuels and to invest in funds that support clean sustainable energy generation. It’s not good enough anymore to just say you are ‘concerned’ – this is an emergency and we have to act. There is nothing stopping other local government pension schemes joining us in putting money where our ethical principles are, whilst still delivering investment strategy objectives.

“Going forward, this should generate strong,  sustainable investment returns to meet our pension member benefits. Southwark has now committed a total of £95m to sustainable infrastructure/renewable energy assets. The new combination of investment, alongside the Fund’s earlier investment of £30m last year with Glenmont Clean Energy Europe Fund III will provide positive diversification of sustainable infrastructure assets across the UK, Europe and Globally. In addition, we have also transferred £600m of our fund into low carbon or fossil free funds over the last two years."

“We are very excited to have Southwark as a partner in our Global Renewable Power Fund III, and together, we are committed to supporting the global shift from two-thirds fossil fuels to two-thirds renewables,” said David Giordano, Global Head of Renewable Power at BlackRock. “Global Renewable Power Fund III seeks to deliver Southwark financial returns with a purpose, as well as low correlation to public markets.”

David Watson, CEO of Temporis Capital Limited said: “We are delighted with Southwark Pension Fund’s commitment to the Temporis Operational Renewable Energy Strategy. This valuable commitment enables Temporis to continue its investment in the generation of clean electricity and the reduction of CO2 emissions. Temporis Capital, established in 2005, is a specialised investment firm based in London focused on impact asset management via a number of asset classes. We manage several funds focussed on investments in infrastructure equity and debt for renewable energy projects”.

Page last updated: 01 July 2019