Our mission since inception remains unchanged: “Forging better futures by investing for a world worth living in”. We have always viewed Responsible Investment not as a department or sub-section of what we do, but as integral to our fiduciary duty and to the entire investment process. Our approach and our culture have both been built on this core belief. Our sixth annual Responsible Investment & Stewardship Outcomes Report, published at the end of May, demonstrates the breadth and depth of this belief in practice. We have captured a small number of Report highlights below. We recommend viewing the full report or, at least, its two-page summary on our website.

www.brunelpensionpartnership.org

White Paper from The Good Economy – Local Impact Investing

Members like to see their pensions harnessed to improve the regions they serve. At a time when government funds are scarce, Westminster and local councils appreciate a rare source of investment. Schools may find opportunities to offer a wider range of opportunities to their students than current budgets allow. Health-related services, such as buses for the elderly or disabled, can be expanded. The development of sustainable energy sources can deliver low-cost energy without the usual climate or political risks. Biodiversity can be improved. Affordable housing can be built.

Through Brunel’s portfolios, our partner funds are invested in all these areas, from affordable housing in Cornwall to rock music classes in UK schools, from onshore and offshore wind in Wales and the Southwest, to giant battery storage facilities in Scotland.

In all these cases, local impact is only deliverable when it makes sense as an investment from a fiduciary standpoint. Moreover, local impact means working closely with local stakeholders. For pension funds, pools and other investors looking to focus on local impact, there are an exceptional number of factors to consider.

That is why the white paper published in September by The Good Economy is so important. It charts the path investors should take as they consider local impact opportunities – and how to approach them.

Having made the case that focusing on long-term, inclusive domestic growth will create a stronger UK economy, the paper makes several headline points, including:

1. Local context is crucial – you cannot rely on off-the-peg solutions
2. Collaboration is key – between pools, AAs, local government etc
3. Share expertise – build large, cross-pool models in target asset classes
4. Use a risk-return impact lens – to enable impact while supporting fiduciary responsibilities

For all the complexities involved, the paper identifies the scale of the opportunity in UK local impact investing.

“This paper not only sets out the significant UK impact opportunity available to LGPS investors but provides a practical approach that enables them to take that opportunity,” said Faith Ward, Chief Responsible Investment Officer at Brunel Pension Partnership. “I expect it to be well-used.”

For a small selection of impactful local investments in the UK, see our map. But our full range is far bigger and includes:

• Cornerstoned a majority UK onshore wind fund in 2019; the NextPower UK ESG fund with fellow LGPS; the Greencoat Renewable Income fund – invested £1.1 billion in >140 UK Solar farms, 3 offshore wind farms, 4 bioenergy assets and the largest UK heat network platform
• Largest-ever secondary solar portfolio transaction in UK history – Toucan – gave our clients access to 177MW of operating solar assets in Southwest
• Coinvest in offshore wind turbine installation vessel company Havfram alongside Sandbrook, de-bottlenecking a key supply chain to future Renewable development.
• Investing in innovative infrastructure via Sidewalk Infrastructure Partners, developing future fit roads, carbon-negative data centres, plastics recycling, virtual power plants and next generation connectivity
• £150 million invested into 1,365 English Affordable family houses and 321 apartments, across 29 schemes from Cornwall to East Yorkshire, with rents set at 22% of average local household income and EPC “B” rating
• Brunel UK property portfolio investment into PGIM UK Affordable Housing of £85 million alongside Greater Manchester and Merseyside as cornerstone anchor investors at first close £80 million invested in the Octopus Healthcare Fund, providing high-quality care home residential accommodation
• Cornerstoned with £78 million invested in UBS Life Science Fund, investing in new UK Life Science labs, GMP and lab-enabled offices in Oxford, Cambridge, Stevenage and Potters Bar

Further reading
Pension Schemes Bill compliance will be a sprint, not a marathon
My Career with Faith Ward