Schroders partners with Apple for clean energy strategy

Schroders Capital's Infrastructure team in Asia announced the first close of a China renewable energy strategy following a $166 million (US$100 million) anchor investment commitment from Apple.

The actively managed strategy targets renewable infrastructure investments in late-stage development and construction wind and solar assets across China.

The strategy aims to deliver attractive risk-adjusted financial returns and Green Energy Certificates (GECs) for clients.

With the anchor investment from Apple, Schroders said the strategy aims to add approximately 550,000 megawatt-hours of new wind and solar energy generation to China's electrical grid annually. This generation is expected to grow as additional clients invest in the strategy.

In addition, the strategy will help advance Apple's ambition to achieve carbon neutrality across its entire carbon footprint by 2030, including its supply chain and product lifecycle.

The second China renewable energy strategy is modelled after the successful first China clean energy strategy, which was launched in partnership with Apple and its suppliers in 2018.

Schroders Capital Infrastructure Asia head of renewable infrastructure Yuyu Peng said the second strategy demonstrated the critical role of supporting the energy transition and the importance of actively managed investment solutions in the space.

"Schroders Capital's renewables team is one of the largest pureplay energy transition infrastructure managers globally, and our team in China has extensive experience of the market and policy environment. This second strategy continues to underline our commitment to Asia Pacific and working as a trusted partner on behalf of our clients," Peng said.

"China is now the largest country in the world for installed renewable energy generating capacity. This will continue to create investment opportunities which help to accelerate our clients' decarbonisation targets while delivering resilient cash flows."

Schroders group chief executive Richard Oldfield said China has been an important strategic focus for the group.

"The combination of decades of global active investment experience alongside the international and local knowledge of our renewables team is a powerful proposition. It supports the creation of innovative investment solutions and delivery of stable returns to our clients," Oldfield said.

"This new strategy reinforces our commitment to Greater China and underscores our role as a trusted active management partner."