Lloyd’s, an insurance and reinsurance marketplace, has launched a private impact fund with an initial £250m allocation aimed in sustainability-focused assets.
According to ESG Today, the fund will target themes such as climate mitigation, climate adaption, circular economy and social inclusion.
Lloyd’s said that the new fund will address twin objectives of investment return and impact, targeting areas in which the requirement for capital exceeds supply, and with each investment aligned to one of seven UN Sustainable Development Goals (SDGs).
The fund is also expected to align with Article 9 principles of the EU’s SFDR regulation, which requires sustainable investment or carbon emissions reduction as an objective. The Private Impact fund will invest globally in areas including private equity, infrastructure, natural capital and real estate.
The new fund is also the first to be launched on Lloyd’s Investment Platform, which was introduced by the company last month alongside Schroders Solutions.
Lloyd’s chief investment officer Eleanor Bucks said, “I am really proud to be announcing the launch and initial investment in the Lloyd’s Private Impact Fund. This is a great example of the impact that insurers can have in addressing climate change and reflects Lloyd’s convening role in leading the Sustainable Markets Initiative Insurance Task Force.”
John Neal – CEO of Lloyd’s – added, “The insurance industry has a critical role to play insuring the risks associated with transition, and providing the investment to accelerate progress – which is why we were pleased to announce a £250 million initial investment into a sustainability-focused Private Impact Fund this week.”
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