Keeping investors connected to what their money is doing: our first council climate investment report

Since our launch a decade ago, helping investors see what their money is actually funding has been central to our mission. Our direct investments have helped fund countless green energy innovations across the country, from tidal power through to sustainable forestry, and we have always been committed to making sure investors are updated on what their money is delivering.

When we launched our council investments in 2020, we wanted to stay true to that same transparent ethos. That’s why we check in with councils on how they are using the funds they raise across the investment term. Anyone who has invested in a council with us will know that you receive an update from them alongside the regular investment returns, with updates on their climate work and how funds have been spent.

But we wanted to go further, so we decided to ensure that our council investments comply with the Green Loan Principles. These are internationally recognised standards, also used by the UK Government for their green investments products — Green Gilts and NS&I green bonds. In simple terms, they ensure that money invested can only be used on green projects and we monitor each council to confirm how they have spent the money invested on Abundance. As of 2022, each council has published a Green Finance Framework when they launch their first investment with us, which sets out the type of projects they will use the funding for and how they will record and report on spending.

So what have councils been doing with the funds raised so far?

We have collated data from all the councils who have raised money with us so far, and we will continue to update this as we get new information from councils on what they have delivered, which is usually provided every six months when they pay their investment returns. Keep an eye on the website for the latest information.

The data below is correct as of 19 February 2024.

Real examples of green projects funded by councils

Councils have delivered a diverse range of green projects with funding raised on Abundance. Here are just a few:

• Warrington Council part funded an advanced hybrid solar farm to generate green energy
• West Berkshire Council funded solar panels on council owned buildings. You can watch a video of their installation here
• Telford & Wrekin Council helped fund their popular Climate Change Fund
• Cotswold District Council installed new public EV chargers to broaden access to green transport for residents

RISK WARNING

As with any investment, there are risks when investing on Abundance. Your invested capital is at risk and any return on your investment depends on the ability of the company or council you have invested in to pay your returns. Investments on Abundance are generally long term and you should be prepared to hold them to maturity. The investments are illiquid and you may not be able to sell them if you need your money back earlier, and their value can rise or fall. Some investments may be secured, but this does not guarantee repayment or your return.

Quoted returns are no guarantee of future returns and past performance is not a guide to future performance. Specific risks will apply in relation to each investment. Please consider all risks before investing. The investments on Abundance include debentures or bonds and peer to peer loans — Abundance’s service in relation to loans is not covered by the Financial Services Compensation Scheme (FSCS).