Sustainable Assets: Investing to mitigate climate change and to close the SDG funding gap

Investment objective

The BlueOrchard Sustainable Asset Fund (BOSAF) addresses unmet needs in the market for sustainable infrastructure, offering complementary, commercial access to climate investing. The main objective of the Fund is to mainstream and scale infrastructure impact investing by providing access to the rapidly growing sustainable asset market in emerging and frontier markets.

Why invest

• Significant need – approximately 75% of the annual investment gap to meet the SDGs attributable to emerging market infrastructure
• Key determinant of greenhouse gas emissions – choices made about infrastructure investments will lock in emission levels for decades
• Relative value investment approach – attractive risk adjusted returns and impact
• Enabler for today’s megatrends – Climate change, renewable energy, smart cities, urban/e-mobility and increasing data traffic/connectivity

Investment strategy

BOSAF focuses on renewable energy, energy infrastructure and energy efficiency, sustainable transport and data infrastructure. The fund provides debt financing to mid-sized infrastructure projects and operating companies at different stages, from green-field projects (e.g. the construction of a new renewable power plant) to brown-field projects (expansion of an existing facility) or operating assets. BOSAF has the ability to provide both senior and mezzanine debt. Together with the focus on mid-sized assets, this closes an important gap in the market while offering attractive returns. The fund has a global remit with investments across ODA-eligible (official development assistance as defined by OECD) countries.

Environmental and social impact

Our investment strategy in sustainable infrastructure aims to improve livelihoods and promote low-carbon and climate-resilient economic development and job creation in emerging countries. We focus on underserved sectors, segments and market actors in sustainable infrastructure. We engage with an active agenda, applying a thorough review of E&S risks and thorough impact assessment, measurement and reporting. The Fund has a clear climate action and impact mandate, addressing eight Sustainable Development Goals. The Fund’s impact management assessment is based on the BlueOrchard’s B.Impact Framework that includes rigorous ESG, impact, and SDG management along the investment process, driven by an independent BlueOrchard’s impact team.

The Fund’s investments will advance BlueOrchard’s mission of mitigating climate change effects and fostering inclusive and climate-smart growth.

The fund will target vital, low risk Sustainable Asset sectors

UN Sustainable Development Goals (SDGs)
addressed by the Fund

Mandate SDGs

 

Sector SDGs

Cross-sectoral SDGs