Why Yorkshire local government pension scheme is investing over £5m in unique flood prevention and water quality fund

It looks to make returns from investing in projects designed to help companies reduce their risks from issues like flooding as well as helping them meet biodiversity targets.

Rebalance Earth is launching the RE(DARWIN) fund, which stands for ‘Rebalance Earth Delivering Adaptation, Resilience, Water Infrastructure through Nature’.

It is intended to provide finance to schemes designed to protect and restore nature at scale in the UK, focusing on tackling climate change-related issues such as flooding, drought, water quality and carbon emissions.

Leandros Kalisperas, WYPF’s Chief Investment Officer, told The Yorkshire Post that the pension fund recently updated its asset allocation strategy to focus on the areas of climate solutions, sustainable cities and economic growth.

He said: “For us this investment hits all of those investment beliefs in one investment.”

Mr Kalisperas said while Rebalance Earth’s activities will have a national focus with announcements on specific projects due “fairly soon”, he hopes it will be possible for the fund to have local involvement in Yorkshire as it progresses.

“You can expect and I will be expecting Rebalance Earth to be engaging with Yorkshire stakeholders.”

He said the fund will be looking to work with corporates, utility companies and local councils on potential schemes.

“Everyone knows about net-zero targets but something people are less familiar with is that there are equivalent requirements for corporates – people have to have a biodiversity plan.

“Rebalance Earth will be looking to develop projects for corporates to satisfy their regulatory requirements in return for income streams over the long term.”

Mr Kalisperas said the decision to back the concept is an exciting one for the fund which he hopes will inspire other local government pension funds to consider similar investments.

“"We don’t do this sort of thing every day.”

He said while other investment funds have invested in areas like forestry, Renewable Earth’s intended focus on issues like water quality makes it different.

Robert Gardner, CEO and co-founder of Rebalance Earth, said: “WYPF is setting the standard on the level of commitment needed to put the brakes on the UK climate and nature crisis.

“With their investment, we can build an expert team, launch our fund, and restore landscapes and seascapes across the UK. Nature is our ally against climate change, and we need to start rebuilding this natural infrastructure to protect our companies, communities and cities.”