Legal & General Investment Management (LGIM) have completed a £25 million transaction with The National Trust (the Trust), one of the UK’s largest charities and the largest conservation body in Europe, to help fund renewable energy projects on its estates, supporting their net-zero by 2030 ambitions.

The proceeds from the transaction will be invested in the next generation of renewable energy hydro-electric and solar generation projects as a key part of the Trust achieving Net Zero across its estate by 2030.  

The Trust takes an active role in mitigating climate change by reducing emissions from the use of fossil fuels, caring for the land that captures and stores carbon and advocating for policies that support this. They have a strong record of developing and delivering renewable projects, having successfully completed over 140 projects in the last 10 years.

This investment follows the launch of the Legal & General Future World ESG Developed Fossil Fuel Exclusions Index Fund (‘the Fund’), developed in collaboration with The National Trust. The Fund’s strategy aims to provide an efficient, low-cost solution to enable investors to seek to reduce their exposure to fossil fuel companies and those with high carbon emissions and reserves, facilitating the transition towards Net Zero whilst targeting long-term, sustainable returns.

LGIM has committed to work in partnership with its clients to reach net-zero greenhouse gas emissions by 2050 or sooner across all assets under management, driven by the conviction that few issues are as significant to our environment and society, and investment returns, as climate change.

Investing across the UK, US and Europe, LGIM Real Assets manages around £17 billion of private credit investments on behalf of institutional clients globally. Its investment capabilities extend across real estate debt, infrastructure debt, corporate debt and alternative debt.

Dabinder Hutchinson, Director of Finance, National Trust: “The National Trust is delighted to raise £25m from LGIM to fund the next phase of our hydro-electric and solar renewable generation projects. As Europe’s largest conservation charity, decarbonising our estate and transitioning to more sustainable forms of energy is hugely important for us. On top of our own ambitions, the need to achieve net zero is a worldwide concern and we hope that the development of more climate friendly investment portfolios will support others in the sector to have more options when it comes to their investment strategies.”

Steve Bolton, Head of Corporate Private Debt, Legal & General Investment Management (LGIM): “We’re delighted to strengthen our relationship with the National Trust and support them in achieving their net-zero and sustainable energy goals. LGIM and the National Trust have a long history of collaboration and this new investment is a great example of how charitable funds can be invested in a socially and economically useful way, driving positive long-term outcomes.”