JLEN Environmental Assets

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Environmental impact

Total emissions avoided across the portfolio is equivalent to taking 170,000 cars off the road every year.

Exposure to many projects

Examples of projects include; solar, wind, hydropower, biomass technologies and water & waste.

Strong commitments

JLEN are committed to investing in ESG-focused, sustainable projects contributing to low-carbon economies.

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Solid performance

Annualised returns of 8.22% have been delivered since inception, outperforming the FTSE All Share.

The fund

JLEN is an environmental infrastructure investment fund that invests in projects using natural or waste resources to support more environmentally-friendly approaches to economic activity. Examples include:

  • The generation of renewable energy through solar, wind, hydropower and biomass technologies
  • The supply and treatment of water
  • The treatment and processing of waste
  • Projects promoting energy efficiency

JLEN have been recognised for their contributions to a greener, more sustainable economy by being awarded the new Green Economy Mark. This is given out by the London Stock Exchange and identifies companies and funds generating between 50-100% of total annual revenues from products and services contributing to the global green economy. JLEN are one of the first holders of this, demonstrating their commitment to investing in environmental assets.

Environmental assets

JLEN's policy is to invest in projects with well-established technologies and those which have track record of operational performance in the UK and OECD countries. At least 50% of the portfolio will be located in the UK, whilst no single project will represent more than 30% of the net asset value after acquisition. This creates a diverse group of environmental infrastructure projects generating predictable and stable revenues.

The team also have a strong commitment to ESG and sustainable investing, believing investments in these kinds of projects will now be supported by a global commitment to achieve low-carbon economies. JLEN undertakes thorough research on each of its asset purchases and will closely monitor and manage performance throughout ownership via third-party service providers. This includes assessing a range of ESG criteria, allowing them to manage risk and identify opportunities as well as maintaining a culture of continuous improvement in all of their activities.

The portfolio is forecast to deliver 520 GWh of electricity per year, which is equivalent to the annual electricity demand of 140,000 households. The portfolio is also expected to avoid emissions equivalent to keeping 170,000 cars off the road. In 2018-19 figures showed that the portfolio contributed to 111,000 tonnes of waste being recycled and over 415,000 tonnes of waste being diverted from landfill. These figures help to demonstrate the positive impact which JLEN’s investments in environmental assets are having.

Example holdings

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Holding
What they do
Bio Collectors Operates one of the only anaerobic digestion sites in the UK certified by the British Gas Council, providing bio-gas directly into the National Grid. The energy produced from recycling food waste is fed straight to homes and businesses.
East London Waste Authority Processes around 430,000 tonnes of household waste each year from four east London boroughs. The site produces revenues based on volume (with a contractual floor) and fixed price bands indexed by inflation.
Yorkshire Hydropower Limited Consists of two operational hydro projects and a battery storage system benefitting from strong contractual revenues.

The fund provides good exposure to the climate change and renewable energy theme. Around half of the portfolio is split equally between solar and anaerobic digestion, whilst 42% of the portfolio is attributable to wind. Waste and wastewater makes up 10% of the portfolio.