USS invests in Iberian solar energy platform

USS acquired a 50 per cent stake in Bruc Energy, a Spanish and Portuguese renewables-focused investment vehicle created by OPTrust and Spanish businessman Juan Béjar. The two will retain the remaining half of the investment.

The company has a pipeline of 4,000 MW of solar photovoltaic farms and a plan to invest in other renewable energies, including wind.

Spain’s target to generate 100 per cent of its energy through renewables by 2050 and the long lifespan of solar panels were among the reasons that made the investment attractive for a long-term investor, USS said.

Simon Pilcher, chief executive of USS Investment Management, said: “We have already invested or committed around £1bn to renewable energy, and demand for this will only increase as more and more countries transition to lower carbon.

“We know that our members care very much about climate change and environmental, social and governance, and we are convinced that USS playing its part in supporting the transition to a low-carbon economy makes good financial sense, too."

He added: “This announcement closely follows on from our stated ambition to become net zero by 2050, so this transaction and others like it will be a key plank of our strategy.”

Elsewhere, USS will bring the management of the property investments within its defined contribution section in-house by the end of 2021, the scheme said in a note to members.

USS already handles the property assets within its defined benefit section directly, but has historically outsourced the management of the property investments sitting within its DC section.

“Having one internal property team means we can select property assets that are aligned with our members’ needs and we can offer better value for money,” the note stated.

This article originally appeared on Mandatewire.com