Smart Pension has invested £330m into two funds run by Octopus Energy to help fast-track the UK’s transition to clean energy.
The move is part of the master trust’s planned 15% allocation to private markets within its default fund to reinforce its commitment to long-term sustainable investment, while also helping the UK to accelerate the transition to a net-zero economy.
Andrew Evans, group chief executive officer at Smart Pension, said: “This collaboration will help deliver strong, long-term returns for UK retirement savers, and also will support efforts to lower household bills and reduce emissions for homeowners.
“It’s a great example of how UK tech businesses can come together to tackle important challenges and create a positive impact.”
Smart Pension will invest 5% of its default fund into the two flagship funds managed by Octopus Energy Generation. This includes Sky (Octopus Renewables Infrastructure) and OETF (Octopus Energy Transition Fund).
“These are the kinds of investments that not only align with our own ethical standards, but also help members feel a deeper connection to their pension savings.”
James Lawrence, Smart Pension
This will help finance a broad range of green energy projects, including the UK’s first investor-funded ground source heat pump network in South Wales, delivered by specialist heat pump company Kensa. The project will provide affordable renewable heating and hot water to 114 new homes at Parc Eirin in South Wales.
As part of the investment, Smart Pension said it would also publish a range of materials relating to the financial and environmental impacts of its investments, including case studies and carbon reporting.
James Lawrence, director of investment proposition at Smart Pension, said: “From renewable surplus power generation to support local leisure facilities, to cutting-edge clean tech like heat pumps, these are the kinds of investments that not only align with our own ethical standards, but also help members feel a deeper connection to their pension savings.”
Chancellor Rachel Reeves visited Kensa’s Cornwall headquarters this week and praised the company’s expansion plans.
“Companies like Kensa are crucial to transforming Britain into a clean energy superpower,” she said.
