Legal & General Investment Management (LGIM) has closed a £25m deal with the National Trust to help fund renewable energy projects on its estates, supporting the UK conservation charity’s net zero by 2030 goal.
The proceeds from the transaction will be invested in the new renewable energy hydropower and solar generation projects.
The National Trust said it takes an active role in mitigating climate change by reducing emissions from the use of fossil fuels, caring for the land that captures and stores carbon and advocating for policies that support this.
It has successfully completed over 140 renewable energy projects on its lands in the last 10 years.
The investment follows the launch of the Legal & General Future World ESG Developed Fossil Fuel Exclusions Index Fund, developed in collaboration with the National Trust.
The fund’s strategy aims to provide an efficient, low-cost solution to enable investors to seek to reduce their exposure to fossil fuel companies and those with high carbon emissions and reserves whilst 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 hydro-electric 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, LGIM, added: “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.”