Pension funds expected to increase investment in renewable energy

UK pension funds are planning to increase allocations to renewable energy over the next five years, according to a report.

Nearly 70% of pension fund investors in the country say they expect renewable energy investment to increase by 2025, while just 10% expect it to fall, research by real assets specialist Alpha Real Capital found. 

According to Alpha’s chief executive, Philip Rose, renewable energy infrastructure has the potential to provide “predictable cash flows, significant inflation linkage, and good duration”.

In the UK, 74% of the 50 pension funds surveyed already invest in the renewable energy sector – but over half believe it is still in the developing stages.

Boris Mikhailov, head of client solutions at Alpha Real Capital, said: “With more pension schemes looking to become carbon-neutral, investment in renewable energy infrastructure has significant ESG benefits and can help schemes on their journey to becoming carbon-neutral.”

© 2020 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Through AI and ML and cloud-enabled ecosystems, managers are finding ways to cut operating costs, supercharge the customer experience and add value to the bottom line.
FIND OUT MORE

PRIVATE MARKETS FUND ADMIN REPORT

LATEST PODCAST