Legal & General has made another investment into low carbon heat, with LGIM Real Assets providing debt finance to renewables funding scheme HeatRHIght.
The funding from Legal & General will support the scheme’s delivery of air source heat pump technology to Housing Associations across the UK, with the financial services giant having also acquired a 36% share in ground source heat technology firm Kensa in 2020.
These two low carbon investments present an opportunity to enable positive change, Legal & General said, helping to reduce running costs and carbon emissions.
The firm pointed to how heating and hot water for UK homes accounts for 25% of total energy use and 15% of the UK’s greenhouse gas emissions, with the housing sector requiring “some of the most radical and comprehensive overhauls of any industry”.
Matthew Taylor, head of alternative debt, LGIM Real Assets, said that with the impacts of COVID-19, “future-proofing our society has never been more important”.
“As we continue to invest in businesses where we can deliver social and economic good, whilst driving value and offer secure returns, clean energy technology has become an increasingly attractive match for our clients long-term pension commitments.”