Investments in green impact
Our green impact investments must contribute to combating climate change and increasing resource efficiency, e.g. through the production of renewable energy, improved use of resources and the development of the green technologies of the future.
In December 2020, the green impact investments amounted to DKK 720 million, corresponding to 7% of the tied-up assets, and contracts for investments have been concluded of a total of DKK 1,283 million. By 2023, the goal is that the impact investments will amount to approx. DKK 1,500 million, corresponding to 15%.
We have invested in green impact since 2013, and today our portfolio consists of 19 investments diversified over 15 fund investments and 4 investments in individual companies. Each of the 15 funds in the portfolio typically invests in 10-15 companies and projects, so in total the impact investments constitute ownership in more than 100 companies and projects worldwide. Below you can read about the background for the impact investments, and on the world map, you can see how they are allocated worldwide.
Find our green impact investments here
Private Equity – Venture Capital
Invests under the slogan 'applying emerging technologies to traditional industries' in relatively well-proven green solutions with limited technology risk within global industries such as transport, logistics and energy. G2VP avoids the early development phase of new technologies, which can take a long time to mature and require a lot of capital.
Cleantech solutions must be upscaled to an industrial scale as soon as possible to help combat climate change. G2VP's focus on capital-efficient companies and their large network of leading industrial companies support this.
Investing at an early stage in 'category creators' and potentially ground-breaking new green technologies. The time horizon for the investments is typically long, and the investments can require a lot of development capital, so the investments are fraught with significant risks.
Combating climate challenges requires completely new solutions in addition to already known solutions. New technologies could potentially solve the challenges faster and cheaper, and Capricorn's investments contribute to this.
Identifies a number of green transitions and the resulting investment opportunities. The fund focuses on incremental solutions rather than more risky, innovative technologies, and is active in sectors such as consumer goods, industry and renewable energy.
The fund uses a systemic approach to identify 'overlooked', green investment opportunities across the innovation chain that are necessary in the green transition, but typically overlooked by many other investors.
Private Equity – Growth Capital and Buyout
Generation Investment Management was founded by Al Gore, David Blood and Peter Knight in 2004 with a mission to promote "Sustainable Capitalism", and they were thus among the first asset managers to focus exclusively on green and sustainable investments. The fund invests in small and medium-sized companies with scaling potential that offer solutions within climate and resource efficiency based on proven technologies.
The fund provides companies with green solutions capital for growth to improve existing products, launch new ones and expand into new markets. The asset manager adds e.g. value through an extensive network of investors, companies and experts in the green field.
Invests in established food and agricultural companies with sustainable products and services. The fund focuses on food processing and on input factors for food production such as seeds, fertilisers, feed and water.
Agriculture and food production is very resource-demanding. Paine Schwartz Partners invests in companies that increase the industry's resource efficiency and make it less detrimental to the environment.
Invests in companies with global scaling potential early in their growth phase. The fund focuses on B2B companies with physical products within industry, energy, food and resource recycling.
Industrial companies account for a large share of global CO2 emissions. The fund invests in companies that help make industrial processes cleaner and more efficient.
The fund invests in sustainably managed forests worldwide. The forests are predominantly sustainability certified e.g. with the FSC label, or the manager is working actively to get them certified. This improves the potential for value creation and helps to ensure that investments are made only in sustainably managed forests.
Forests are an important part of the fight against climate change, as trees convert CO2 and sunlight into biomass in trunks, branches and root systems. Wood used for furniture and building materials typically has a long life, whereby the carbon is bound in the wood for many years, and the wood can replace CO2-intensive materials such as concrete and steel. Wood can also replace fossil fuels in the production of electricity and heat.
The fund invests in the development and construction of renewable energy worldwide. The asset manager is a leading developer of offshore wind, which in recent years is experiencing rapid growth worldwide. Fund IV is the world's largest fund to date dedicated exclusively to renewable energy with a fund size of approx. € 5 billion.
25% of total global CO2 emissions come from the production of electricity. The electrification of society and the desire to combat climate change are expected to increase the demand for green electricity significantly in the coming years. Green electricity based on wind, water and solar power is competitive with electricity based on burning fossil fuels such as coal and gas in large parts of the world.
The market for offshore wind has grown fast in recent years, and therefore increasingly complements the markets for onshore wind and solar energy. As a leading developer of offshore wind, the manager contributes to this growth and helps reduce production prices. Offshore wind is e.g. characterised by a relatively stable production, as it often blows at sea, and offshore winds, therefore, minimise the challenges of varying production from renewable energy.
This 'Fund of Funds' invests in approx. 15 underlying, green funds based on real assets such as the production of renewable energy, green properties, sustainably managed forests, water infrastructure, etc. Hereby achieving a very large degree of diversification across asset managers, technologies, sectors and geography.
Sonen Capital was one of the first asset managers to focus on Impact Investments, thus helping to spread this type of investment. In addition, Sonen is among the leaders in measuring and reporting on impact.
Invests in large projects to produce renewable energy from onshore wind and solar power in OECD countries. Investments are made in all project stages from development to operational projects.
25% of the total global CO2 emissions come from the production of electricity. The electrification of society and the desire to combat climate change are expected to increase the demand for green electricity especially in the coming years. Green electricity based on solar energy, wind and water is today competitive with electricity based on burning fossil fuels such as coal and gas in large parts of the world.
BlackRock is the world's largest asset manager, and it is therefore important that BlackRock is increasingly involved in the green transition, e.g. through the launch of products such as the Global Renewable Power Funds.
The manager is 100% dedicated to sustainable investments, and Impax offers both listed and unlisted investment products. Impax New Energy Fund III develops medium-sized plants to produce renewable energy in the EU. The European market for renewable energy is fragmented, and Impax is therefore building up portfolios of smaller projects that are sold to large institutional investors.
Impax develops smaller projects to produce renewable energy, which are typically too small for large managers and large funds. This increases the supply of renewable energy in Europe, which means fewer CO2 emissions from electricity production based on fossil fuels.
Invests in sustainable, real assets in areas not yet in the spotlight of major institutional investors. The manager identifies investments where changed cost structures and new technologies enable a significant impact and attractive returns e.g., within solar energy, energy storage and electrification of ferries.
Today capital injection is accelerating the roll-out of new green, resource-efficient solutions, and in the long run, the fund can help to attract additional institutional investment capital to the selected investment areas.
Focus: Large-scale greenhouses in the United States.
The fund develops and builds large greenhouses in North America (primarily in the United States) based on new technologies in LED lighting, supply of nutrients and water. The greenhouses are leased to established vegetable producers in crops such as tomatoes, lettuce, cucumbers, peppers and berries.
Conventional field-based food production is significantly less resource efficient than food production under controlled conditions in greenhouses. Thus, the yield per. sqm in greenhouses is typically 10 times larger than that in fields, and at the same time typically only one tenth as much water is used.
Mission Related Investments
Merkur Andelskasse is Denmark's leading values-based bank. As the first bank in Denmark, Merkur stopped all their financing of new petrol and diesel cars in 2020.
Every DKK invested in Merkur Andelskasse can be lent out up to 6 times, and the investment, therefore, has a significant potential for impact within Merkur Andelskasse's business areas.
Website (in Danish)
The funds have guaranteed a loan granted by Merkur Andelskasse to Thorup Strand Kystfiskerlaug to finance a new fishing vessel and the allocated fishing quotas.
Thorupstrand catches fish according to traditional, resource efficient and gentle principles, which have minimal impact on the seabed flora and fauna.
The funds have guaranteed a loan granted by Merkur Andelskasse to Kystfisker Kompagniet in Korsør. The company buys and processes local fish caught with gentle gear such as nets, seines, pots, hooks and bottom nets.
The loan to Kystfisker Kompagniet enables local processing and sale of fish as an alternative to the traditional sales channel via auction in North Jutland.
Investments have thereby supported the sale of fresh, local fish, reduced the need for transport and improved the economy for local fishermen in Korsør.
Website (In Danish)
CPH Village develops and builds temporary student housing at student-friendly rents. The investment contributes to CPH Village being able to realise its long term goal of offering 2,500 student apartments in Copenhagen. CPH Village utilises centrally located areas that are otherwise deserted, and the homes are built in sustainable materials such as wood. In addition, CPH Village encourages students to lead a sustainable lifestyle, e.g. by offering sharing platforms for furniture and transport, etc.
There is a shortage of thousands of student apartments in the Danish student cities, especially in Copenhagen. CPH Village addresses this in a sustainable way by utilising uninhabited areas and significantly reducing the CO2 emissions associated with the construction and operation of the student housing compared to traditional alternatives.