The UK’s Accelerating the energy transition as an increasingly core component of its investment strategy has become a priority for APG in recent years. This includes significant investments in renewable energy projects and innovative technologies that promote sustainability.

For its infrastructure investments, APG has developed a comprehensive net-zero strategy centred on sustainability that is designed to mitigate climate risks, enhance resource efficiency, and deliver societal benefits, all while aiming for long-term financial returns. Its approach is defined by stringent standards and practices aimed at ensuring that APG’s investments make a significant contribution to a sustainable low-carbon future.

Moreover, to ensure that each infrastructure investment is aligned with its broader responsible investment and stewardship policy, APG has established a set of guidelines that promote transparency and accountability in reaching its net-zero objectives.

APG actively engages with the companies it invests in to promote better environmental practices. This is very much an integral part of its fiduciary duties and the high level of engagement that it pursues is designed to guarantee that investments not only yield financial returns but also drive meaningful environmental improvements. APG measures the success of its engagement by considering the progress that these firms make in their sustainability metrics, such as reduced emissions and improved energy efficiency, alongside financial returns.

APG is constantly looking to refine its approach to the energy transition and net zero and as such plans to expand its investments in emerging technologies that support the energy transition, such as battery storage and carbon capture. Furthermore, it aims to increase its influence on global environmental policies through active participation in international forums and by aligning more closely with the Paris Agreement goals.

Examples of direct infrastructure deals in 2023 and 2024 include solar and battery storage projects in the US, vehicle-charging specialists in France and Belgium, and international energy suppliers in the Netherlands and Australia.

STRATEGIC TAKEAWAYS

IST3 Infrastruktur Global prioritises the energy transition throughout its portfolio construction, with over 50% of its assets value now allocated to energy generation, transmission, distribution and storage. Since its inception a decade ago, it has focused on renewable energy assets, many of which it still holds as part of its long-term objectives and commitment. Its strategy is based on direct ownership or exposure through partnerships. Full direct ownership includes solar and wind farms in Germany and small hydro assets on the Iberian Peninsula. The foundation monitors these assets daily, both technically and financially, using specialised software for real-time energy output and outage data. A notable example of the use of partners is its investment in the Alberta Powerline in Canada, where it is part of a consortium with another financial investor and various Canadian First Nations.