RIEL continued to work closely with investment managers on ESG issues in directly held real assets and in making investments and divestments in line with the ROP. This close collaboration ensures maximum impact for the Trustee. The Trustee has a significant portfolio of real assets. Some of these assets are wholly owned and some are owned as a joint venture or minority interest. Through RIEL and its investment managers, the Trustee can take more direct action to address ESG issues and apply its ROP. Activity in the reporting period included the following:

  • Real estate

    The joint venture with Legal & General to develop retirement villages through Inspired Villages is well underway and is an opportunity for the Trustee to use sustainable technologies in its real estate with ground source heat pumps and solar power key features of these developments. Greater use of renewable energy will help residents manage their cost of living better and reduce reliance on fossil fuels with associated price volatility.

  • Renewable energy

    The Fund continues to produce renewable energy from onshore UK windfarms managed by Vantage and Schroders Greencoat. The Vantage assets generated 201GWh of clean energy equivalent to the annual energy needs of 69,000+ households. The same assets contributed to 575Ktonnes of CO2 abatement annually equivalent to 187,000+ cars off the road.

  • Shipping

    The Fund has started to sell some of its ships. Previous capital expenditure on energy saving devices is expected to increase the marketability of these vessels and these decisions made during the Trustee’s period of ownership mean that subsequent owners will benefit from greater fuel efficiency and lower emissions. The Fund’s total emissions will likely reduce as a result of these sales.

  • Sanction risk

    RIEL placed a restriction on any further investments being made in Russia, Belarus or Ukraine as a direct response to the Russian invasion of Ukraine in February 2022. The Fund does not have any significant exposure to these markets.