Substantial funding of £80 million allocated for a novel ecological infrastructure plan
In a significant stride towards a greener future, the East of England is making a name for itself as a regional leader in sustainable infrastructure. This transformation is largely due to the investments made by the Bedfordshire Pension Fund and Staffordshire Pension Fund in the Bedfordshire Sustainable Infrastructure (BSIF) programme, spearheaded by Gresham House.
The investments in BSIF are not just financial transactions; they are building blocks for a more sustainable region. By incorporating industry-leading sustainable infrastructure assets into the mix, the region is set to lead the way in the UK's transition to net zero.
The BSIF programme is attracting interest from several Local Government Pension Scheme (LGPS) pools, including Border to Coast, Brunel Pension Partnership, LGPS Central, Local Pensions Partnership Investments (LPPI), London CIV, Northern LGPS, and Wales Pension Partnership. These institutional investors see the potential in Gresham House's Sustainable Infrastructure Strategy and are eager to contribute to the cause.
One of the key benefits of the BSIF programme is its focus on reducing water usage. Through the cultivation of leafy greens instead of imported crops, the programme has enabled up to 98% less water usage. This not only conserves a valuable resource but also contributes to a more sustainable food production system.
The infrastructure developments, which include habitat banks for biodiversity, vertical farming, and broadband rollout in remote communities, are expected to generate £600m in economic, social, and environmental benefits. Additionally, the investments have led to the creation of thousands of hectares of new biodiversity habitats, further enhancing the region's environmental profile.
The investments have also created approximately 5,000 new jobs that will be available in 2025/26. Cllr Doug McMurdo, chair of the Bedfordshire Pension Fund, stated that the fund is committed to creating positive environmental and social change for communities in the East of England.
Peter Bachmann, managing director of sustainable infrastructure at Gresham House, highlighted that the support from institutional investors, including the Bedfordshire and Staffordshire Pension Funds, empowers them to continue directing capital into areas where real asset-based solutions can have the biggest impact.
The 'place-based impact investing' approach, which prioritizes underfunded sectors that offer the potential for strong returns and further deal-flow, has already raised £400m for Gresham House's Sustainable Infrastructure strategy. The strategy prioritizes greenfield, mid-market (sub-£50m) platform opportunities in underfunded sectors that offer strong returns and further deal-flow.
The cultivation of leafy greens through the programme creates 1,900 times less carbon compared to traditional methods, underscoring the strategy's commitment to reducing carbon emissions. Other LGPS funds have shown interest in the sustainable strategy, indicating a growing trend towards sustainable investing.
The scale of infrastructure investment required presents compelling opportunities to help develop critical assets that will improve lives and deliver lasting local economic and environmental benefits. With the support of institutional investors and the vision of Gresham House's Sustainable Infrastructure team, the East of England is well on its way to becoming a beacon of sustainability in the UK.
