Scottish Widows launches £1.4bn green investment funds

Scottish Widows green investment Image credit: Serge Cornu via Shutterstock

Pension and insurance company Scottish Widows has launched four new green investment funds totalling £1.4bn.

Scottish Widows will target companies developing solutions for clean energy, clean mobility, sustainable transport, biodiversity preservation, and pollution.

The Edinburgh-based insurer developed its primary fund, the Global Environmental Solutions fund, alongside Schroders, which will serve as the asset manager of the green investments.

To be eligible, companies must attribute at least 50% of their revenue to green products and services. Scottish Widows will also consider companies that put a minimum of 20% of expenditure towards developing a circular economy.

“With the launch of our new fund, we are taking steps ourselves towards driving major investment into better outcomes for the environment as well as our customers,” said Maria Nazarova-Doyle, head of responsible investments and stewardship at Scottish Widows.

“We have an urgent imperative to support the companies attempting to drive the change our planet desperately needs while protecting the savings and livelihoods of our members in the long run. More innovative solutions are on the horizon, but we must work together to ensure they become a reality.”

The other green investment funds from the insurer – the Scottish Widows Emerging Markets Paris-aligned Index Equity Tracker, Scottish Widows Developed World Paris-aligned Index Equity Tracker and Scottish Widows UK Climate Transition Index Equity Tracker funds – will be managed by Blackrock and Abrdrn.

Venture Capital firm Jenson Funding Partners in December 2022 launched its own £60m green investment fund, while Barclays has launched a £500m Sustainable Impact Capital fund.