Scottish Widows Establishes £1.4bn Sustainable Investment Funds

Scottish Widows, a pension and insurance provider, has introduced four new eco-friendly investment funds with a combined value of £1.4bn.

Scottish Widows will direct their efforts towards businesses that are creating inventions for the purpose of clean energy, green movement, conserving transport, conserving biodiversity, and controlling pollution.

The insurer, located in Edinburgh, initiated the Global Environmental Solutions fund in conjunction with Schroders, who will act as the asset manager of the environmentally-friendly investments.

In order to qualify, businesses must declare that at least half of their profits come from green products/services. Additionally, Scottish Widows will also consider companies that have allocated at least 20% of their spending towards creating a circular economy.

At Scottish Widows, Maria Nazarova-Doyle, the Head of Responsible Investments and Stewardship, announced the introduction of a new fund aimed at furthering environmental and customer-focused outcomes through significant investments.

It is of the utmost importance that we back businesses that are trying to bring about the transformation the world desperately requires, while preserving the assets and incomes of our members for the future. Newer and more advanced ideas are on the way, but we have to collaborate to make certain that they actually become a fact.

Blackrock and Abrdrn have been appointed to manage the Scottish Widows Emerging Markets Paris-aligned Index Equity Tracker, the Scottish Widows Developed World Paris-aligned Index Equity Tracker and the Scottish Widows UK Climate Transition Index Equity Tracker funds, all of which are green investment funds from the insurer.

At the end of 2022, Jenson Funding Partners initiated a £60m Green Investment Fund, and Barclays announced a £500m Sustainable Impact Capital fund.