We're playing our part in responsible investing. This new fund will support a national transition to a low-carbon economy.
ACC has today launched a $100 million climate change impact fund.
We are seeking expressions of interest in initiatives that reduce carbon emissions. These initiatives also need to provide strong risk-adjusted financial returns.
The fund has a long-term investment horizon and flexibility in how it structures transactions.
We are open to any size of debt or equity investment. We will increase the size of the fund depending on the merits of each opportunity.
The fund will be led by scientist, cleantech and environmental professional Mr James Muir.
It will be the second impact fund in ACC’s private markets investment portfolio. It follows the announcement last year of a $50 million health and safety fund.
This fund combines our expertise in injury prevention with our proven skill in investment management. That fund has seen ACC partner with New Zealand firms Robotics Plus and Mentemia.
Taking responsible action
“The Climate Change Impact Fund is an example of how ACC is playing its part as a responsible investor," says Mr Muir.
"We’re already working on some exciting investment opportunities. These are innovative companies whose growth will help transition New Zealand to a low-carbon and vibrant economy."
“At this early stage, the fund is pretty broad. We’re talking with unlisted companies across different sectors and segments, different lifecycle stages and varying investment requirements – both equity and debt.
"Informed by these discussions, we’re developing a robust understanding of the underlying economics which in turn is shaping our strategy for the Fund.”
Mr Muir joins ACC from Callaghan Innovation. At Callaghan he created the environmental technology portfolio. He also, with other agencies and investors, launched NZ CleanTech to create a long-term pipeline of such business.
Prior to that he was a senior leader at infrastructure firm, Jacobs New Zealand. He worked in Asia, the Pacific and the United Kingdom. Mr Muir advised on climate change, sustainability and responsible investment.
Aiding nationwide change
Mr James Miller is the ACC Board Investment Chair. He says the impact funding fits well with ACC’s investment and climate change strategy.
It supports our commitments in the Crown Financial Institution Responsible Investment Framework.
“As a Crown agency, investing in solutions that accelerate New Zealand’s transition towards net zero while also providing strong investment returns that helps New Zealanders pay less in levies for accident cover, is core to ACC’s purpose," says Mr Miller.
ACC wants to hear from promising investment candidates. We are primarily interested in the New Zealand market.
We also welcome approaches from organisations who are seeking to make a positive impact to support New Zealand’s transition to net zero.
Investments in Australia will be considered. There needs to be a direct connection to what ACC does and /or transferability of technology to the New Zealand market. We are open to partnering and co-investing.