How businesses can invest in the transition to a sustainable future in Southwark
There are some big financial questions posed by the climate emergency, which were raised when we commissioned our London Bridge Net Zero Routemap in 2022.
How do we finance the costs of Net Zero?
How can we offset our emissions locally, rather than through uncertain international credits?
How can we make sure that our investments contribute to a more sustainable future?
The Southwark Green Investment, launched by Southwark Council earlier this month, responds to some of these questions, providing individuals and businesses with the chance to fund green projects in the borough, and receive a return on the investment of 4.6%.
In 2021, Southwark Council set its 2030 net zero ambition for the whole borough (and in London Bridge we have aligned to this target). The capital cost of the climate change strategy was estimated at £3.92 billion - requiring new and innovative funding solutions.
Southwark Green Investment is a chance for everyone to get involved in delivering the net zero vision. The council wants to raise £6 million by 2030 through a series of investments, to fund a range of projects from their climate programme.
Its first raise is targeting up to £1 million by 27th May, and it will help fund projects including more cycle hangars, LED street lighting and kick-starting its schools and leisure centre retrofit programmes. Currently, 420 individual investors have raised £551,429 via the investment platform.
In a webinar for our businesses on 15th March Councillor Emily Hickson (Deputy Cabinet Member for Green Finance, and the ward councillor in London Bridge) indicated some of the benefits to business, and we had some lively discussion about how businesses could be more actively involved in the future.
So to start to answer those tricky questions:
This is a new way to fund the costs of making London Bridge and Southwark net zero. It will have the added benefit of engaging people and businesses in the transition, and making the services that we rely on locally more sustainable.
This is not an offset since the carbon reduction will be counted by Southwark Council, and counting it for the investor would mean double counting. BUT, it is interesting for businesses looking more flexibly at their ESG investment portfolios, as there will be social benefits (for example, reduced heating costs in schools frees up funds for other educational resources) and it will help to fund the transition to a sustainable future.
And as this funding is going directly on projects that improve climate and air quality, you and your business will benefit. The council as the accountable body will provide 6-monthly summaries on precisely where the funding is spent, and the benefits from that.
To take part, Abundance Investment has created this platform for Southwark Council, which has been trialled in several boroughs now. If you have any questions for how your business might get involved, either for this round or future rounds, I’d certainly be keen to hear your thoughts as there has been interest in shaping a ‘sustainable transition fund’ locally. Contact me on jack@teamlondonbridge.co.uk, or contact emily.hickson@southwark.gov.uk directly with questions about this fund.
*Team London Bridge is not recommending how businesses invest their money and as with all financial products there are risks involved. More information here
**Southwark Green Investment is a Southwark Council initiative. Abundance Investment are arranging this investment on behalf of Southwark Council.