GLIL Infrastructure implements new framework to support net zero ambitions

GLIL Infrastructure, the UK-based £3.6bn infrastructure investment fund, has adopted a new investment management framework to help it deliver on its target to become net zero by 2050.

The Institutional Investors Group on Climate Change (IIGCC) Net Zero Investment Management framework (NZIM) sets out clear methodologies and approaches for investors to align their portfolio goals with the Paris Agreement, supporting them to make informed decisions and work towards achieving net zero global emissions.

Published in March 2023, GLIL is one of the first investors to adopt the NZIM guidance for infrastructure, which builds on IIGCC’s broader NZIM framework, the most implemented net zero methodology for investors across all financial institutions within the Glasgow Financial Alliance for Net Zero (GFANZ).

The GLIL Executive Committee has worked swiftly to select the new framework to support the business with structuring its net zero strategy and to allow for a consistent framework across its portfolio. GLIL believes this NZIM approach will enhance its work in the energy transition by providing further support for its existing portfolio companies to ensure they have achievable net zero pathways.

GLIL is a partnership of UK pension funds specially designed to help pension fund members tap into the stable, inflation-linked returns that infrastructure investment offers. GLIL manages £3.6 billion of committed capital, with more than £3 billion deployed into a growing portfolio of infrastructure assets spanning renewable energy, battery storage, regulated utilities, ports and logistics, trains, hospitals, and schools. GLIL’s focus on the energy transition can be seen in the fund’s latest investment in a portfolio of 247MW of operational UK solar assets.

Beth Breen, ESG Analyst at GLIL Infrastructure, says: “As a fund which delivers valuable investment into critical infrastructure projects across the UK and beyond, we know it is our responsibility to ensure that net zero commitments are carried out within an effective strategy to achieve our 2050 targets. We believe the NZIM framework will allow infrastructure investors to bring further substance to their Net Zero ambitions in a sector where it has been largely lacking.

“Our adoption of this new framework aligns with our members’ commitment to driving the energy transition towards a sustainable net zero economy.”