Investment made by LGPS fund in infrastructure for flood control and ecological restoration

West Yorkshire Pension Fund Invests in Rebalance Earth for Sustainable Water Solutions

The West Yorkshire Pension Fund (WYPF) has made a strategic investment in Rebalance Earth, a UK-based fund manager specialising in nature restoration. This move is aimed at addressing critical water issues in the country, including flood risks and water supply maintenance during dry spells.

Rebalance Earth employs cutting-edge technology to guide investments in natural landscapes. Using artificial intelligence, remote sensing, and geospatial mapping, they aim to create a more resilient and sustainable water infrastructure. By investing in rivers, wetlands, and other natural features, they aim to filter pollutants, ensuring cleaner water for both ecosystems and human use.

The investment in nature-based solutions is expected to address both water quantity and quality issues. With over 185,000 businesses in England and Wales at risk of flooding, according to the Environment Agency, and the UK's water companies releasing sewage for more than 3.6 million hours in 2023, the need for such a solution is evident. A typical flooding incident in the UK costs businesses an average of £82,000 each, as per the London Climate Resilience Review.

Moreover, an insufficient water supply is projected to cost London's economy £500m per day by 2050, as stated by the Environment Agency. This investment by WYPF is seen as crucial for backing UK growth and mitigating flood risks.

Leandros Kalisperas, WYPF's chief investment officer, commented, "As a large asset owner, we have a responsibility to provide direct patient capital to nature as infrastructure." Rebalance Earth finances nature as infrastructure and generates returns through "nature as a service contracts". These contracts deliver reduced flood and drought risks, consistent water availability, improved water quality, increased biodiversity, and carbon sequestration.

The chancellor, Rachel Reeves, has launched a pensions review to look at merging the UK's 86 separate Local Government Pension Scheme funds. This investment in Rebalance Earth by WYPF marks a significant step towards sustainable and resilient water management in the UK.