Bluefield Solar Income Fund (LON:BSIF) (BSIF) is an investment company focused on the acquisition and long-term management of a diversified portfolio of low carbon assets in the UK, with a primary focus on solar assets. The fund's initial public offering (IPO) was in July 2013, making it the first investment company focused on solar PV to be listed on the London Stock Exchange (LSE). The investment objective of the fund is to deliver long term, attractive yield via the payment of quarterly dividends.
The fund primarily targets utility scale solar assets and portfolios on greenfield, industrial and/or commercial sites. Whilst the initial investment focus was 100% UK solar, in July 2020 the mandate was widened to enable investment into complementary technologies including wind and storage.
As a pioneer in the renewable market, BSIF has always had a clear environmental focus. BSIF believes that the integration of ESG considerations into investment processes can help to mitigate risk and support long-term resilience of investments, whilst at the same time generating positive value in addition to financial returns. Examples include social value through community benefit fund payments, or environmental value through nature initiatives on site. The positive environmental contribution of the fund has been recognised and in 2019 it was awarded the LSE Green Economy Mark and achieved Guernsey Green Fund status. In 2021 it was admitted as part of the TISE Sustainable market segment.
In line with the environmental characteristics it promotes, BSIF is categorised as an Article 8 fund under the Sustainable Finance Disclosure Regulation, and aligns its portfolio with the EU Taxonomy. BSIF’s Investment Adviser, Bluefield Partners LLP, undertakes detailed due diligence on each investment opportunity, covering a range of environmental, social and governance topics. Please refer to BSIF’s Sustainable Investment Policy, available on its website, for further information on how sustainability risks are integrated into the fund’s investment processes.
BSIF identified its material ESG risks and opportunities via a materiality assessment, drawing upon internal (i.e., representatives from the Bluefield Group) and external stakeholder perspectives alongside a landscape review of the ESG regulatory environment. The fund’s ESG strategy and KPIs have been built around these aspects to help measure and manage material ESG-related risks and opportunities. BSIF’s ESG strategy is centred around three key pillars:
- Climate change mitigation: supporting the UK with its net zero carbon ambition whilst aligning to the TCFD recommendations.
- Pioneering positive local Impact: considering and, where possible, enhancing nature and encouraging community engagement at the local level.
- Generating energy responsibly: a commitment to help drive ethical practices within its operations and throughout its supply chain.
ESG topics are arranged under the three pillars and reflect priority focus areas, as identified by stakeholders, regulatory requirements (including the EU SFDR, EU Taxonomy and TCFD), and ESG frameworks, including SASB. Further information on the Company’s ESG Strategy is available within its Annual Reports.
BSIF recognises the potential negative impacts that come with being part of the renewables industry, for example environmental impacts relating to construction, or social risks within wider renewables supply chains. As part of its responsible investment approach, which refers to the integration of ESG across the investment lifecycle (which does not include the manufacturing or end-of-life processing of materials), BSIF considers both the positive and adverse impacts of its investment decisions on sustainability factors, and produces a Principal Adverse Impact (PAI) statement annually.
BSIF benefits from a highly experienced, fully independent board of directors. The Board is comprised of five individuals, the chairman and four directors who bring broad and deep experience from the commercial and industrial sectors as well as experience of investment companies. Bluefield Partners LLP acts as Investment Adviser to the fund; it is FCA regulated and a signatory to the UN Principles of Responsible Investment (UN PRI). Bluefield Group is made up of five separate, complementary businesses, each responsible for a different part of the investment, development and operational cycle.
