Bluefield Solar Income Fund | ESG

The Company was founded on the belief that renewable investments created the opportunity for attractive and stable returns whilst advancing the decarbonisation of the energy markets. It was the first solar energy focused investment company to launch on the London Stock Exchange in 2013, and the Company’s mandate has since widened to include onshore wind and storage technologies, with portfolios on greenfield, industrial and/or commercial sites. As such, the Company is supporting the UK’s Net Zero Carbon Ambition by helping to mitigate climate change through the generation of renewable energy.  

As a pioneer in the renewable market, the Company has always had a clearly articulated environmental focus. However, the Company acknowledges that delivering renewable energy also has wider environmental, social and governance challenges that must be managed, and that presents broader opportunities and benefits that can be maximised. In 2022, the Company developed its approach and embraced a critically self-reflective practice to discover, define and articulate an ESG strategy that reflects stakeholder expectations, and which will deliver a positive impact across its portfolio of investments.

Renewable Energy, Delivered Responsibly: Driving shareholder value whilst promoting positive environmental and social impact through our work as a pioneering and responsible renewables fund. As well as supporting the UK’s Net Zero carbon ambition, we aim to enhance biodiversity across our sites, to support the UK in mitigating both the climate and ecological crisis.

The Company’s ambitions will be achieved through delivery of its ESG strategy, which is centred around three key pillars:

• Climate Change Mitigation: Supporting the UK in achieving its Net Zero Carbon ambition whilst aligning to the TCFD recommendations.
• Pioneering Positive Local Impact: Enhancing biodiversity and encouraging community engagement at the local level throughout the asset lifecycle.
• Generating Energy Responsibly: Driving ethical practices within our operations and throughout our 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.
• ESG reporting frameworks, including SASB.

These underpin what will become the Company’s biggest value and impact drivers. Further information on the Company’s ESG Strategy is available in its 2022 Annual Report.

The Company understands that its shareholders want to both support the transition to a low carbon economy and achieve their return on investment, but wish to do so whilst ensuring that the assets’ localities, biodiversity, and communities are protected and benefit, where possible, from investment.

The Company’s ESG policy, which communicates its ESG ambition and strategy, is available on its website.

On behalf of the Company, the Investment Adviser undertakes detailed due diligence on each investment opportunity, including in relation to ESG and climate risks and opportunities. Please refer to the Company’s Sustainable Investment Policy, available on its website, for a full breakdown of how sustainability risks are integrated into the Company’s investment process.

The Company has elected to adopt an Article 8 classification under the Sustainable Finance Disclosure Regulation (SFDR). Given the nature of the Company’s investments, Article 9 classification has been considered. However, there is currently insufficient detail on the level of regulatory scrutiny Article 9 funds will be subject to compared to Article 8. As the requirements and expectations of the SFDR become clearer, the Company will review whether Article 8 classification remains appropriate.

For the purposes of Article 8, the environmental characteristics promoted by the Company are to reduce reliance on fossil fuels and facilitate the UK transition to renewable and sustainable methods of energy generation.

Sustainability-related disclosures are available on the Company’s website.

TCFD

As a renewable energy fund, climate change poses both opportunities and risks to the Company. Climate-related considerations form a key element of the Company’s ESG strategy, helping ensure that climate is considered across the investment lifecycle, including pre-investment due diligence, asset management and reporting. Although the Company does not currently fall within the scope of the FCA’s mandatory reporting requirement, it has chosen to undertake TCFD reporting on a voluntary basis. The Company’s first TCFD disclosure was presented within its 2022 Annual Report.

AIC

The Board recognises the importance of sound corporate governance and is complying with the new AIC code effective 1 January 2019. The Investment Adviser is FCA regulated and a signatory to the UN Principles of Responsible Investment (UN PRI).

In recognition of its positive environmental impact, the Company has been awarded the following accreditations:

• Guernsey Green Fund
• TISE Sustainable
• London Stock Exchange Green Economy Mark

The Company is served by a fully independent Board. All directors retire and submit themselves for re-election at each AGM and the Board has an active refreshment programme underway in line with its succession plan and policy. The Board meet at least four times a year, with several ad-hoc meetings and regular contact with the Investment Adviser.

Great importance is placed on communication with shareholders and the Company is committed to providing a high level of transparency and disclosure with its reporting. In support of ESG, the Company, Investment Adviser and Bluefield service providers commit to:

• Working with both shareholders and stakeholders to develop a reporting framework that meets both their needs and is appropriate for the Company’s investment portfolio; and
• Encouraging dialogue on ESG matters with shareholders and other renewable energy firms in order to improve responsible investment standards within the renewable energy sector.

Further information relating to the ESG activities of the Company can be found within the Annual and Interim Financial Accounts on the Company’s website: https://bluefieldsif.com/investors/publications/.