A look at ABP's efforts to bolster climate-focused start-ups and escalate their growth
The Dutch pension fund ABP, managing over €500 billion in assets, has announced a significant €30 billion investment basics in the climate transition. This ambitious plan includes a commitment to invest €10 billion in fidelity investments.
ABP aims to achieve net-zero emissions by 2050, and by 2030, they aim to reduce greenhouse gas emissions by 50% compared to 2019 levels. To accelerate this transition, ABP has set a goal to cut €15 billion in exposure to fossil fuels.
ABP's investment basics strategy is multifaceted, focusing on various sectors that contribute to the energy transition and biodiversity. They have established mandates for the ABP Dutch Energy Transition and Biodiversity Fund and the private credit mandate to support sustainable investments that align with their goals.
One of the areas ABP is particularly interested in is the intersection of circularity and the energy transition. For instance, they have invested in Methaplanet, a company that produces pellets from horse manure to optimize biomethane output, and Taylor, a business that optimizes solar panel performance.
ABP's investments also extend to innovative companies in the food sector. They are exploring opportunities in businesses that develop new methods to make food production carbon-neutral, deforestation-free, and waste-free. Additionally, they are looking at businesses that produce proteins more efficiently and humanely.
ABP has made several notable investments in this area. They have funded viktor.ai, a company helping engineers reduce emissions within the construction industry. They have also invested in NET2GRID, a company using AI for personalized energy saving tips.
Moreover, ABP's infrastructure team invested €250 million in a UK-focused bioenergy fund, BioticNRG. They have also established a mandate to invest €250 million in start- and scale-ups via the ABP Dutch Energy Transition and Biodiversity Fund (ANEB). This mandate is focused on filling a funding gap for innovative Dutch companies active in the energy transition.
ABP's strategy is not limited to direct investments. They have exited all assets in oil, gas, and coal, including liquid assets worth about €10 billion. They have also made six direct investments and three fund investments with more than €100 million of exposure.
In the realm of renewable energy, ABP owns a company called Triple Solar that combines solar panels with heat pumps. They believe that such investments will play a crucial role in the transition to a sustainable future.
Governments can also contribute to this transition by removing barriers-to-entry and streamlining processes, such as approving novel food ingredients more efficiently. This will help attract more investments in innovative start-ups and scale-ups, addressing the significant funding gap that currently exists in these early stages.
In conclusion, ABP's €30 billion investment basics in the climate transition, with a focus on impact investments, is a significant step towards achieving their net-zero emissions goal by 2050. Their diversified investment basics strategy, focusing on areas such as energy transition, biodiversity, food production, and private credit, demonstrates their commitment to a sustainable future.
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