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ESG & Impact Overview
ORIT is an Impact Fund with a core impact objective to accelerate the transition to net zero through its investments. By channelling capital towards sustainable outcomes that mitigate climate change, ORIT aims to contribute to international efforts to limit the global temperature in this century to below the Paris Agreement’s target of 2 degrees
Key Metrics
£1,104m
of funding committed into renewables (31/03/2024)
1,569GWh
Potential annual renewable electricity generated once fully operational
384k
Estimated annual equivalent homes powered by clean energy once fully operational
400k
Estimated annual equivalent tonnes of carbon avoided once fully operational
2.0m
New trees required to avoid the same carbon
168k
Equivalent cars off the road required to avoid the same carbon
Investing responsibly for our investors
ORIT enables individuals and institutions to engage with the energy transition and invest directly into a portfolio of renewable energy assets. The renewable energy generated supports the transition to net zero by replacing unsustainable energy sources with clean power. The ability to invest in Renewable Energy Assets is a powerful tool, which not only enables people to invest in line with their values, but also drives necessary change, facilitating the transition to a more sustainable future
Ambition to bring Environmental, Social, Governance (“ESG”) and Impact to life
ORIT alongside its Investment Manager, Octopus Energy Generation, has developed an Impact Strategy based on extensive research in the field, drawing from best-in-class approaches to impact generation, industry expert advice and feedback from ORIT’s key stakeholders. Our approach both looks inwards and evaluates ESG related risks to the investment, but also looks outwards, evaluating potential harms that the investment could make to the planet or people
View ESG & Impact StrategyESG:
A vital risk management approach to identity and mitigate a range of potential issues to protect, and hopefully enhance, the long-term value of the investments
Impact:
What an investment does to the environment or society
Additionality
One of the biggest opportunities to create more impact in our investment mandate is through investing in construction and development assets. Genuine additionality results from adding more generation capacity in the countries we have invested in. We are passionate about driving genuine additionality through our developer and construction investments and have a designated impact budget that goes beyond what is mandated.
ORIT commits a percentage of annual shareholder dividends every year to an impact budget which is for dedicated spend on impact initiatives across its portfolio of investments. The size of the impact budget is directly linked to the size of the fund, ensuring continued significant contribution to impact initiatives as the fund grows
ORIT commits a percentage of annual shareholder dividends every year to an impact budget which is for dedicated spend on impact initiatives across its portfolio of investments. The size of the impact budget is directly linked to the size of the fund, ensuring continued significant contribution to impact initiatives as the fund grows
Dedicated Impact budget:
£340k
FY 2023 budget for Impact initiatives
Community benefit funds budget:
£1.02m
FY 2024 budget
Our Approach
To ensure that our activities integrate ESG risks and bring to life additional impact opportunities, the Impact Strategy considers all of ORIT’s culture, values and activities through three lenses: Performance, Planet and People.
It is our aim to maximise the opportunity and privilege available to us as a land manager and renewable asset owner, and we want to ensure all stakeholders are considered as we transition to a green energy future
It is our aim to maximise the opportunity and privilege available to us as a land manager and renewable asset owner, and we want to ensure all stakeholders are considered as we transition to a green energy future
Investing Responsibly
Performance
Build and operate a diversified portfolio of renewable energy assets, mitigating the risk of losses through robust governance structures, rigorous due diligence, risk analysis and asset optimisation activities to deliver investment return resilience
Planet
Consider environmental factors to mitigate risks associated with the construction and operation of assets, enhancing environmental potential where possible
People
Evaluate social considerations to mitigate risks and promote a ‘Just Transition’ to clean energy
Our Impact Partners
As laid out in our Impact Strategy, ORIT seeks opportunities to implement initiatives that enhance the environment and communities it operates in
Biz Give is seeking opportunities to support innovative projects that enhance the environment and support communities, promoting a “just transition” to clean energy. UK charities and community groups can apply for ORIT funding through the BizGive platform
ORIT is partnering with Wychwood Biodiversity – a consulting group specialised in biodiversity management in the solar industry. Working with Guy Parker, founder of Wychwood Biodiversity, ORIT is delivering a number of biodiversity enhancements across its solar sites
ORIT is partnering with The Good Bee Company – a network of beekeepers with one central mission, “bringing people, businesses and communities together in partnership for the planet”. Working with a local beekeeper to an ORIT owned solar site, ORIT has sponsored two beehives and multiple “bee and biodiversity” workshops with local schools
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ORIT is partnering with Earth Energy Education – a group of teaching professionals passionate about empowering children through education about a greener future. Working with Earth Energy Education Consultants, ORIT has delivered renewable energy workshops and site visits for schools near an ORIT owned solar site. This long-term partnership aims to reach 150 students each year for the foreseeable future, educating students to the benefits of the renewable energy transition
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ORIT is partnering with SUGi - an organisation that engages with local communities to transform abandoned lots, under-utilised spaces, and degraded waterways into ultra-dense, biodiverse pocket forests. By sponsoring forests in the UK and in Europe, ORIT is helping SUGi to bring nature closer to people and to fight the biodiversity crisis
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Integration into the Investment Cycle
Every investment the Company makes is assessed against our Performance, Planet and People framework through an ESG scoring matrix. This ensures that our investments adhere to ORIT’s ESG Policy and minimum scoring threshold for investment approval. It is used as a tool to drive ESG engagement and ensure that ESG risks are promptly identified, appropriately investigated, and carefully mitigated where necessary
Reporting
ORIT commits to being transparent, measuring and reporting both positive and negative impacts on the planet. By reflecting on potential negative impacts rather than ignoring them, the Company can create meaningful targets for improvement and maximise the positive impact of its investments. As part of this approach ORIT will review and adopt relevant industry standards alongside initiatives to reduce its own carbon footprint
Impact delivered through Performance, Planet and People impact initiatives will be measured through qualitative case studies and quantitative metrics alongside any contributions to the UN Sustainable Development Goals (SDGs). The initiatives associated with ORIT’s investments are categorised thematically
Impact delivered through Performance, Planet and People impact initiatives will be measured through qualitative case studies and quantitative metrics alongside any contributions to the UN Sustainable Development Goals (SDGs). The initiatives associated with ORIT’s investments are categorised thematically
Sustainable Momentum
Initiatives that aid the production of renewable energy, promote sustainable cities and communities, and mitigate the impacts of climate change.
Equality & Wellbeing
Projects that encourage well-being of all stakeholders through robust governance structures, health and safety management, educational training, volunteering, transparent reporting and workplace engagement.
Stakeholder Engagement
Driving positive change at a system level, through explorative collaboration and setting targets with key partners.
Innovation
Investing time and resources into promotion of entrepreneurship, creating scalable impact and asset performance optimisation.
UN SDGs:
We choose to report our impact through KPIs and in line with the SDGs. The UN SDGs aim to create a better future for all in relation to ending extreme poverty, fighting inequality and injustice, and protecting our planet by 2030. These SDGs have become part of the universal language for reporting on the impact of investments. Our core impact goal directly contributes to the UN SDGs 7, 11 and 13 but ORIT also contributes to a broader set of SDGs as a result of its additional impact initiatives and business processes
Core SDGs:
Reducing reliance on fossil fuels for energy by investment into renewable energy generation assets
Reducing the adverse environmental impacts of cities and communities through renewable energy generation
Demonstrating commitment to the Paris Agreements and contributing to decarbonisation of the economy through low-carbon, renewable energy assets
Additional SDGs:
Broadening implementation of anti-poverty strategies via community benefit agreements and initiatives
Reducing pollution through the reduction of emitted green house gases (GHGs) by the installation and management of clean, low-carbon energy generation assets. Championing health and safety and promoting employee wellness
Partnership with to provide free education programmes and site visits to local schools. Funding of multiple charities supporting projects that drive STEM learning, climate action, biodiversity conservation, and community renewables
Conducting human rights due diligence and providing access to remedy
Using expertise and latest technologies to maximise electrical output and future-proof energy systems
Supporting a just transition to a low-carbon economy
Partnerships with local beekeepers and local shepherds to take advantage of the empty spaces of solar farms for their agricultural use
Preserving integrity of land through investment in low-impact and low-polluting technologies and the introduction of environmental initiatives through active asset management, supporting biodiversity and the ecosystem
Shared knowledge with key counterparties to ensure continued compliance with the ESG policy and drive improvements to ESG land management practices
Related Policies
In addition to a fund-specific ESG Policy, our investment manager, Octopus Energy Generation, has a number of policies and processes that support our commitment to ESG matters, including a Responsible Investment Policy, Stewardship and Engagement Policy, Biodiversity Mission Statement, Equal Opportunities Policy, Modern Slavery Policy, Whistleblowing Policy and Conflicts Policy. The Octopus Group Responsible Investment Committee monitors fund management teams’ adherence to the Group and fund policies
Strengthening our approach through external ESG focused organisations
Signatories
The green economy mark identifies London listed companies and funds that generate between 50% and 100% of total annual revenues from products and services that contribute to the global green economy.
Regulated Frameworks
Sustainable Finance Disclosure Regulation (SFDR)
We have classified ORIT as an Article 9 Product. It is our ambition to adopt regulatory requirements as soon as we are able even if not yet obligated to support investors gain transparency in sustainable investing. The SFDR is a legislative tool designed to reorient capital towards more sustainable businesses while combating ‘greenwashing’. A key part of the SFDR is linked to transparency, explaining how managers take adverse impacts on sustainability factors into account
View SFDR disclosuresTask Force on Climate-related Financial Disclosures (TCFD)
Whilst renewables represent a climate solution, it is not exempt from the potential impacts of climate change. ORIT recognises that there are a number of climate-related risks and opportunities that may have a material financial impact on ORIT’s performance. For this reason, ORIT is a supporter of the recommendations of the Task Force on Climate related Financial Disclosures
EU Taxonomy Alignment
The EU Taxonomy is a classification system for sustainable activities designed to help investors identify “green” environmentally friendly activities. This is aimed to demonstrate investments that are sustainable, ones that make a substantial contribution to climate change mitigation or adaptation, while avoiding significant harm to other environmental objectives and complying with minimum safeguarding standards. As a SFDR Article 9 impact fund ORIT aims for 100% EU Taxonomy-aligned investments
