- Foresight obtains independent third-party EU Taxonomy validation for the Skaftåsen wind project.
- Foresight Energy Infrastructure Partners (“FEIP”) aims to be one of the first fully EU Taxonomy-compliant investment funds.
- Foresight anticipates a pivotal shift in investor practice as sustainability and ESG reporting become crucial considerations in the EU’s journey to net-zero greenhouse gas emissions by 2050.
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LONDON, 22 July 2020: Foresight Group LLP (“Foresight”), the specialist renewable energy infrastructure investment manager, is pleased to announce that it has attained European Union (“EU”) Taxonomy validation from Aardvark Certification Limited (“ACL”) for its 231MW greenfield onshore wind project in Sweden.
With accelerating investor interest in, and appetite for, sustainable and ESG investment opportunities, the EU Taxonomy will provide greater transparency for renewable energy and other sustainable infrastructure projects. In particular, the EU Taxonomy will demonstrate the genuine impact a renewable energy asset has in respect of material global sustainability themes, such as consistency with decarbonisation objectives set out under the 2015 Paris Agreement. Accordingly, Foresight believes there is significant value in having its assets’ compliance with the Taxonomy validated by an independent third party. This will provide investors with additional reassurance regarding projects that are making a genuine contribution to global sustainability targets.
Foresight acquired the Skaftåsen wind farm through Foresight Energy Infrastructure Partners (“FEIP”, the “Fund”) alongside a syndicate of leading European Institutional Investors in April of this year. Subsequent to the acquisition, ACL performed an independent validation on the onshore wind project, which was found to be compliant with all relevant criteria. As a leading sustainability and ESG-focused investment manager, Foresight has taken this pioneering step which it acknowledges will soon become a mandatory requirement.
The EU introduced its “Green” Taxonomy as a means of defining the criteria that economic activities must meet in order to be considered “sustainable”. To be certified as compliant, a project must meet the stipulated ESG requirements and must be proven to contribute substantially to no fewer than one out of six environmental objectives, of which ‘climate change mitigation’ is the most relevant to renewable energy.
By setting out transparent, science-based, industry-specific thresholds to direct investment flows towards building a low carbon, resilient and resource-efficient economy, the Taxonomy is set to play a major role in the EU’s €1 trillion “Green Deal”, which is anticipated to require the mobilisation of £175 billion of investment every year for the next thirty years.
Richard Thompson, Partner at Foresight and Co-manager of FEIP said: “We are fully supportive of the EU Taxonomy and are delighted to have received this independent validation from ACL for our Skaftåsen onshore wind project. We will be applying this approach across the entire FEIP portfolio in due course and are proud to be investing for a smarter future, by visibly making a positive contribution towards the EU’s goal of Net Zero by 2050.”
Nicholas Johnn, Director of ACL added: “We were delighted to be selected by Foresight to undertake this validation exercise using the EU Taxonomy framework. Designed specifically to help identify investments that can be considered as truly sustainable, we are pleased to say that Foresight’s 231MW Skaftåsen wind project meets all the necessary criteria and can be considered as EU Taxonomy compliant.”
Foresight is working towards a second close for FEIP which is on target for €500 million. Foresight is partnering with Worthwhile Capital Partners as Placement Agent for the Nordic region and Astrid Advisors for Europe ex Nordics.
For more information please contact:
Ben Thompson, Foresight Group email@example.com | +44 (0)20 3667 8155
Notes to Editors
About Foresight Group LLP (“Foresight”)
Foresight is a leading independent infrastructure and private equity investment manager which has been managing investment funds on behalf of institutions and retail clients for more than 36 years.
Foresight has €7.2 billion* of Assets Under Management, of which over €4.9 billion relates to renewable energy infrastructure. Foresight currently manages more than 245 renewable generation assets globally, with a total generating capacity of 2.3GW.
Foresight manages over 140 solar plants and has more than 1.3GW of solar generation assets under management around the world.
Foresight has more than 600MW of wind generation assets across the UK, France, Germany and Sweden of which 370MW are operational.
Foresight manages over 40 bioenergy and waste projects processing some two million tonnes of waste every year, having mobilised more than £1 billion of capital investment into the sector.
In addition, Foresight manages 190MW of Reserve Power assets and three utility scale Battery Storage projects providing 46MW of Enhanced Frequency Response services to National Grid.
Foresight is headquartered in London with regional offices in Manchester, Nottingham, Edinburgh, Cambridge, Milton Keynes, Leicester and Guernsey and international offices in Sydney, Rome, Madrid, Luxembourg and Seoul.
* Following completion of the recent announcement of Foresight Group’s acquisition of Pensions Infrastructure Platform (PiP), total AUM will increase to €7.2bn
About Aardvark Certification Limited (“ACL”)
Aardvark Certification Limited (ACL) is a specialist assurance and certification body. ACL provide fully independent and impartial auditing and certification services in the areas of carbon, energy and waste with specific expertise in the renewable energy and low-carbon sector.
About EU Taxonomy
The EU Taxonomy is driving standardisation in sustainability and ESG reporting by providing investors, companies, issuers and project promoters with a unified lexicon regarding sustainable finance, by setting out transparent, science-based, industry-specific thresholds, to direct financial flows towards building a low-carbon, resilient and resource-efficient economy.