After announcing a health and safety fund last year, we are proud to announce a second impact fund that's working for a positive future.
Our Board Investment Committee today announced it will be launching a $50 million climate change impact investment fund in the third quarter of 2021.
The new fund will be the second impact fund in our investment portfolio following the announcement last year of a $50 million health and safety fund that combines our expertise in injury prevention with its proven skill in investment management.
That fund has seen us partner with New Zealand firms Robotics Plus and Mentemia.
Impact investing focuses on investing in companies that intend to create social or environmental change with a financial return.
“ACC believes there are opportunities to expand our impact fund portfolio by investing in innovative initiatives that reduce carbon emissions while providing a strong investment return that helps New Zealanders pay less in levies for accident cover,” Board investment Committee Chair James Miller says.
“The fund will align with ACC’s Climate Change Framework and the objectives of our investment fund. We plan on formally launching the fund later this year and will seek investments that produce superior risk-adjusted returns and make a measurable impact in reducing CO2 emissions and/or CO2 equivalents."
“The climate change impact investment fund could be increased to $100 million if sufficient commercial opportunities arise and we are open to partnering and co-investing.”
Mr Miller said we acknowledge the Climate Change Commission’s 2021 report, that major emissions reductions need to be made from every sector to achieve net zero emissions for Aotearoa-New Zealand by 2050.
The Commission’s forward-looking carbon budgets suggest large sectoral investment and resource reallocation is required to achieve New Zealand’s 2050 targets.
Mr Miller says a key resource we expect to use to help it screen for opportunities is the Ministry for the Environment’s marginal abatement cost (MAC) curve analysis.
MAC curves demonstrate there are a range of investment opportunities to help reduce gross emissions in New Zealand.
We are in the process of establishing the climate change impact fund team in the Private Markets area and welcomes enquires from investment professionals keen to be part of the team.
Enquires can be sent to firstname.lastname@example.org.