Avon Pension Fund’s Post

Today's push for board renewal at Woodside Energy by HESTA was the wake-up call that the company needs. Woodside's planned new fossil fuel growth would over their lifetime create over 240 times as much climate-heating emissions as its so-called "new energy projects and low carbon solutions", none of which are committed and most of which are fossil-based. It's unclear why Woodside believes it can avoid the impacts of the global energy transition as noted by the IEA. This is the kind of muscular engagement that we need from other funds, to promote climate action with the added bonus of avoiding shareholder value destruction. It was evident from the Q&A following Woodside's presentation today that funds remain skeptical of the heavy reliance on ever-elusive CCS targets, the ongoing integrity questions around offsets, particularly for fossil fuel emissions, and the lack of diversification planning, and board skills. It was quite astounding to hear the CEO say that their plans for just transitions included remaining producing at Karratha for decades to come. There was no indication that that production would involve renewable production to support a clean manufacturing future for WA - indeed Woodside said that was not within their capabilities. Woodside needs new capabilities. The world does not need, and cannot afford, new fossil gas projects - full stop. It's time for Woodside to review its production growth incentive, and failing that for funds to be clear about their intentions for board-level accountability. Good to see Debby Blakey once more demonstrating leadership. https://lnkd.in/gx5TDxSZ

Our latest research has found Australia’s top 30 super funds have been reducing their investments in oil and gas producers Woodside Energy and Santos Ltd over the past two years, relative to the Australian stock market. “Australia’s largest super funds are turning their backs on Woodside and Santos as more members demand greater climate action,” says Brett Morgan, Superannuation Funds Campaigner at Market Forces. “Super funds must demand and deliver an end to Woodside and Santos’ oil and gas expansion plans and publicly divest if they fail to comply.” The top three funds with the highest investment exposure to Woodside, compared with the ASX300 benchmark as of 30 June 2023, are: 🔺 AustralianSuper’s Balanced option 🔺 ESSSuper’s Growth option 🔺 AMP’s MySuper 1970s option The top three funds with the highest investment exposure to Santos, compared with the ASX300 benchmark, as of 30 June 2023 are: 🔺 ESSSuper’s Growth option 🔺 Hostplus’ Balanced option 🔺 Equip Super’s MySuper option Read the full media release: https://lnkd.in/g2TGaVCt #superannuation #divestment #santos #woodside #oilandgas #ethicalinvesting

Blackstone announced the final close of its US$7.1 billion Blackstone Green Private Credit Fund III (BGREEN III), which is the largest energy transition private credit fund ever raised. BGREEN III is managed by Blackstone Credit's Sustainable Resources Platform, which focuses on providing #privatecredit to #energy transition-related initiatives, namely #renewableenergy, and #infrastructure. The platform has ca40 investment professionals globally and invests across the credit spectrum in investment-grade credit, non-investment-grade credit, and preferred and convertible securities. In 2022, #blackstone announced that it sees an #opportunity to #invest an estimated $100 billion in #energytransition and #climatechange solutions projects over the next decade across its #businesses. The closing of BGREEN III not only highlights Blackstone’s commitment to #financing this sector but also demonstrates wider #investor commitment in light of the global shift to a #cleanenergy #economy. The fact that the fund was oversubscribed, shows that there is strong #demand for private credit in the energy transition. Increased #liquidity in the sector is a typical signal that the energy transition #market is poised for a major #boom. However, do we think there will be a smooth take-off? What constraints are there that could limit growth? It would also be interesting to follow the distribution of funds. Which market do you think will receive the greatest investment? Let me know in the comments below!

Making it easier and more attractive for our local super funds to invest in new clean energy development is one of the greatest priorities of the energy transition. Copenhagen Infrastructure Partners is here to help - to increase people’s wealth in retirement, and ensure we’re on track for a clean, affordable, and reliable energy system. What else might need be needed to make it easier or more attractive for super funds? #superannuation #cleanenergy #australia #newzealand

🔋 Blackstone's Record-Breaking Move in the Energy Transition 🔋 Exciting news in the world of #sustainablefinance! Blackstone has just set a new record by raising a staggering $7.1 billion for its energy transition credit fund, named Blackstone Green Private Credit Fund III (BGREEN III). This marks the largest energy transition private credit fund ever raised. 🌍🌱 Dwight Scott, the Global Head of Blackstone Credit, expressed the company's commitment to this green mission, stating: "Blackstone has built a premier platform focused on private credit in the energy transition and infrastructure markets. We are grateful for the trust from our limited partners and are eager to invest in this burgeoning market environment." A bit of backstory: Blackstone unveiled its Sustainable Resources Platform in January 2022. This initiative was designed to bolster investment and lending to renewable energy ventures and those propelling the energy shift. Their focus areas encompass residential solar, renewable electricity generation, energy transition-enabling products, decarbonized transportation, and green financings, to name a few. 🌞⚡ Upon the platform's inauguration, Blackstone projected a promising opportunity - to channel an estimated $100 billion into energy transition and climate change solution endeavors over the forthcoming decade. In the words of Robert Horn, Global Head of the Sustainable Resources Group for Blackstone Credit: “The energy transition is reshaping vast sectors of the economy, necessitating efficient private capital. Given our vast experience and reach, we're confident in Blackstone Credit's ability to offer adaptable solutions to the pioneers of this monumental shift and deliver impressive returns for our investors.” #EnergyTransition #SustainableInvestment #Blackstone #GreenFinance #ClimateChange #esginvesting #esg #cleanenergy

US private capital group Global Infrastructure Partners (GIP) and Canada’s largest pension fund are nearing a deal to buy ALLETE, a regulated utility with sizeable clean energy operations, for about $5bn. Bankers led an extended process to find a buyer for Allete, with some infrastructure groups deterred by uncertainty over the returns they could earn from a regulated utility, FT reported. #MergersAcquisitionsDivestitures #Utility #Infrastructure

Big news in the energy sector! 🌱 Canada Pension Plan Investment Board (CPP Investments) and Global Infrastructure Partners (GIP) have agreed to acquire Allete. This $6.2bn deal marks a major step in the clean-energy movement. 🌍✨ Allete is pioneering the energy transition by boosting renewable energy and cutting carbon emissions. They're not just talking about sustainability - they're living it. Their 'Sustainability-in-Action' strategy is proof of their commitment to a cleaner future. With CPP Investments and GIP stepping in, Allete gains solid financial backing, ensuring the delivery of safe and affordable energy. It's a partnership that's aligned in values and vision. They're all about making a positive impact on the planet and supporting the communities they serve. 💡👥 Change is in the air, and it sounds promising. What's your take on this massive move towards a sustainable energy future? Drop a comment - let's get the conversation rolling! ⚡🔄 #CleanEnergy #Sustainability #RenewableEnergy

"Janet, your insights are greatly appreciated, and they underscore the importance of the discussions we're having. These dialogues are essential for striking a delicate equilibrium between investing in the future and navigating multifaceted risks spanning economics, technology, the environment, regulation, society, and geopolitics. The momentum we're building with #speedandscale in the energy sector is truly exciting. It's a compelling time for young talents to join us in reshaping the world." #EnergyInnovation #FutureLeaders

I welcome the $2b private investment to create a climate infrastructure fund from Blackrock. The world is full of private investors wanting to invest in energy, it highlights we should welcome private capital investment and let New Zealand energy innovators get on with the job. However, the devil is in the detail, Blackrock will be expecting a return on its investment and some analysis suggests a hurdle rate of circa 12%. This could still be a challenge for new energy innovations like Wave, Bioenergy, Tidal, etc. Overall, This is a positive step towards improving our energy mix and Taranaki has the skills, knowledge, and resources to help make it happen.

"Brookfield and Alterra Launch Catalytic Transition Fund to Accelerate Global Clean Energy Investments" On June 13, 2024, Brookfield Asset Management and Alterra Management announced the launch of the Catalytic Transition Fund (CTF), also known as "The Fund." To urgently reduce emissions and accelerate the climate transition, the Brookfield-managed CTF will leverage a $1 billion commitment from Alterra funds to generate up to $5 billion in total capital for investment in emerging markets. The CTF attracts private capital for clean energy projects in emerging markets. Managed by Brookfield and backed by Alterra, it accelerates decarbonization while offering attractive returns. Alterra limits its returns to reduce risk for other investors, aiming to boost private funding and support ambitious climate projects worldwide. CTF focuses primarily on clean energy and transition assets across developing economies, which currently receive only about 15% of global clean energy investments. This initiative aligns with the goals set by the Paris Agreement, addressing the critical need for increased clean energy investments in these regions. The fund will invest in areas such as South and Central America, South and Southeast Asia, the Middle East, and more, with Brookfield contributing at least 10% of the total capital. This includes significant investments in countries like India, which strongly support clean energy policies. Ready to learn more? Let's connect! 💬 Brookfield Asset Management ALTÉRRA #sustainability #energy #environment #trending #funding