Richard Oldfield

Schroders Capital’s Infrastructure team in Asia has announced the first close of a China renewable energy strategy following a US$100 million anchor investment commitment from Apple. 

The actively-managed strategy targets renewable infrastructure investments in late-stage development and construction wind and solar assets across China, aiming to deliver attractive risk-adjusted financial returns and Green Energy Certificates (GECs) for clients. 

With this anchor investment from Apple, the strategy aims to add approximately an annual 550,000 megawatt-hours of new wind and solar energy generation to China’s electrical grid. This generation is expected to grow as additional clients invest in the strategy.

In addition to contributing to a cleaner power grid in China, the strategy will help advance Apple’s ambition to achieve carbon neutrality across its entire carbon footprint by 2030, including its supply chain and product lifecycle.

This China renewable energy strategy is modelled after the successful first China clean energy strategy, which was launched in partnership with Apple and its suppliers in 2018. 

Schroders Greencoat, an advisor to the strategy, is one of the largest pureplay renewable energy and energy transition infrastructure managers globally with active management strategies across the clean energy and asset-lifecycle spectrum – including wind, solar, bioenergy and transition investments. Additionally, the infrastructure team in Asia has extensive experience and networks in renewable energy investment in China, with a deep understanding of China’s renewable energy policy environment. The team has successfully invested 1.2GW in renewable energy assets, including a diverse portfolio of 47 wind and solar projects.

Yuyu Peng, Head of China Renewable Infrastructure, Schroders Capital Infrastructure Asia, said: “This second strategy continues to demonstrate the critical role our clients can play in supporting the energy transition and the growing importance of actively managed investment solutions in this space. 

“Schroders Capital’s renewables team is one of the largest pureplay energy transition infrastructure managers globally, and our team in China has extensive experience of the market and policy environment. This second strategy continues to underline our commitment to Asia Pacific and working as a trusted partner on behalf of our clients. 

“China is now the largest country in the world for installed renewable energy generating capacity. This will continue to create investment opportunities which help to accelerate our clients’ decarbonisation targets while delivering resilient cash flows.” 

Richard Oldfield, Group Chief Executive, Schroders, said: “China has long been an important strategic focus for Schroders; we were among the first international asset managers to enter mainland China and have been actively engaged with the domestic market for over 30 years.

“The combination of decades of global active investment experience alongside the international and local knowledge of our renewables team is a powerful proposition. It supports the creation of innovative investment solutions and delivery of stable returns to our clients.

“This new strategy reinforces our commitment to Greater China and underscores our role as a trusted active management partner.”

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