Insurance and pensions giant Scottish Widows told Net Zero Investor today it has launched a new investment vehicle, called the Global Environmental Solutions Fund, which is focused on directing pension investment into companies that provide solutions to critical environmental issues, such as global greenhouse gas emissions, food security, pollution, and biodiversity loss.
The fund targets companies involved in advancing alternative energy generation and supply, clean mobility, transport and infrastructure sustainability, forestry, sustainable agriculture, biodiversity preservation and pollution prevention.
Developed with fund manager Schroders, the vehicle plans to invest in companies that derive at least 50% of their revenues from goods and services that facilitate sustainable alternatives in transportation, electricity and heat production, water use, agriculture, or industrial manufacturing.
However, companies that direct at least 20% of capital expenditure to the adaptation of their businesses or products and services to the circular economy are also eligible.
Moreover, companies that, in Schroders’ opinion, exert significant influence through their policies and practices over their supply chains or customers to reduce emissions also qualify.
Maria Nazarova-Doyle, head of responsible investments and stewardship at Scottish Widows, said: “We recently called for the industry and government to tackle environmental crisis and nature degradation together through joined up, focused action.
“With the launch of our new fund, we’re taking steps ourselves towards driving major investment into better outcomes for the environment as well as our customers.”
Scottish Widows also launched three regional equities funds which track decarbonising benchmarks, between the four funds making for £1.4bn worth of assets.
These funds, managed for Scottish Widows by BlackRock and Abrdn, look to invest in companies leading the transition to a low carbon economy, and which help Scottish Widows meet its targets to halve the carbon footprint of all its investments by 2030 and reach net zero emissions by 2050.
Last month, Scottish Widows confirmed to Net Zero Investor that Nazarova-Doyle will solely focus on responsible investment going forward.
