Largest Institutional Investors, with Leadership from CA, NY, PA & OR, Eclipse $1 Billion Clean Technology Investment Goal
NEW YORK-Sept. 21, 2006
Seizing on a worldwide trend to develop lower-polluting, climate-friendly technologies, the Investor Network on Climate Risk (INCR) announced today that its members have allocated more than $1 billion of their assets to clean technology ventures over the past 18 months. The investments, announced at the Cleantech Venture Forum XI in New York, cover such technologies as hydrogen fuel cells, alternative and renewable energy, water and advanced materials.
Looking forward, the Cleantech Venture Network(R) forecasts that cleantech venture capital investment opportunities for major institutional investors globally through 2009 are estimated at $17 billion, with $10 billion in North America, $5 billion in Europe and $2 billion for the rest of the world. Cleantech Venture Network(R) research has also shown that for every $100 million invested into venture-backed companies, 2,700 new jobs are created and the overall economy receives a 5x positive impact in related economic growth. (Please note that this research excludes project finance and other private equity investment categories.)
Pennsylvania State Treasurer Robert P. Casey Jr.'s announcement last week to pledge $90 million of state funds to a new Keystone Green Fund and other clean technology investments brings INCR's total clean technology investments to more than $1 billion since spring 2005. California's two largest pension funds have led the way, along with state treasurers and comptrollers from New York and Oregon. All are members of INCR, a three-year-old alliance of 50-plus leading investors whose collective assets total more than $3 trillion.
"INCR members are positioning themselves to take advantage of the vast growth opportunities from the rapidly emerging cleantech and low-carbon global economy," said Ceres President Mindy S. Lubber, who directs INCR. "We expect even larger investments in the years ahead as promising clean technologies gain a bigger foothold in the U.S. and across the world."
"Cleantech now resides with the heavyweights in the world of innovation and investing," said Nicholas Parker, co-founder and chairman of the Cleantech Venture Network(R). "The $843 million in cleantech deals tracked by the Cleantech Venture Network(R) in second-quarter '06 totaled 12.4 percent of overall venture investment, placing cleantech behind only biotechnology and software as venture capital investment categories. It is the first time cleantech has surpassed telecommunications and medical devices and equipment."
INCR members announced the $1 billion goal in May 2005, when 500 company, investor and Wall Street leaders gathered at the Institutional Investor Summit on Climate Risk at the United Nations in New York. The largest investments have been made by the nation's two largest public pension funds, the California Public Employees' Retirement System (CalPERS) and the California State Teachers Retirement (CalSTRS). Details are as follows:
CalPERS, $700 Million: The CalPERS board has $500 million invested in environmentally screened stock portfolios in the U.S. and overseas. An additional $200 million has been targeted for private equity stakes in environmental technology ventures in such fields as energy-efficient materials, photovoltaics and other renewable energy technologies. Many of the ventures are based in California.
"CalPERS is pleased that INCR members have reached the $1 billion allocation target for clean technology and renewable energy, given the growing need for energy solutions," said Charles P. Valdes, chair of CalPERS Investment Committee. "This is a good start as we pursue compelling investment opportunities to develop ways to conserve and augment diminishing resources and seek energy alternatives that will meet rising market demand."
CalSTRS, $188 Million: CalSTRS has made $188 million of clean sector investments, including about $150 million in renewable energy projects in Europe and the U.S.
New York Retirement Fund: $30 Million: The New York State Common Retirement Fund has made a $30 million commitment to the Carlyle/Riverstone Renewable Energy Infrastructure Fund I. The fund has raised $600 million to invest in renewable energy projects, including hydroelectric plants, wind systems, geothermal and biomass facilities. The CRF has already invested in a wood burning power plant, ethanol plants, geothermal and solar power plants throughout North America.
"Investing in renewable energy companies is a sound long-term investment strategy that will provide the New York State Common Retirement Fund with strong returns," said New York State Comptroller Alan G. Hevesi. "Businesses are finally realizing that global warming is not just a theory, but a reality. Developing sound environmental technologies and businesses will ensure companies' long-term profitability and help protect our natural resources."
Oregon State Treasurer's Office, $50 Million: The Oregon Investment Fund this year approved investments in First Reserve XI, which has extensive alternative energy technology holdings, as well as Nth Power, a clean energy capital venture fund that is backing more than a dozen alternative energy companies.
"Clean technology investing is smart money for the long term," said Randall Edwards, Oregon State Treasurer. "When you invest in clean technology, it is first an investment for financial return, and it is also an investment in energy independence and an installment in our human responsibility to leave this world in a better condition than we found it."
Pennsylvania State Treasurer's Office, $90 Million: Last week, Pennsylvania State Treasurer Robert Casey Jr. announced a new $90 million green investment strategy. About $40 million dollars will be invested in a new Keystone Green Fund that the treasury office is establishing to leverage private sector investments in clean technology products that will help the state's economy. An additional $50 million will be reallocated to investment managers with a demonstrated track record on their investments in clean technology stocks.
The Investor Network on Climate Risk was launched by Ceres and a group of 10 institutional investors at the Institutional Investor Summit on Climate Risk at the United Nations in November 2003. INCR now includes more than 50 institutional investors who collectively manage more than $3 trillion of assets. The group is dedicated to promoting a better understanding of the financial risks and investment opportunities from climate change. For more information, visit http://www.ceres.org or http://www.incr.com
About Clean Energy Investment Working Group
The Clean Energy Investment Working Group (CEIWG) supports INCR members who are actively exploring new cleantech investment commitments. Ceres and the Clean Energy Group coordinate the activities of the CEIWG. For more information, please visit www.cleaninvestment.org
About Cleantech Venture Network(R), LLC
Cleantech Venture Network(R) LLC is a membership group that catalyzes investment, business opportunities, and relationships driving the growth of cleantech globally. The network has over 1100 affiliate members worldwide who take advantage of the global Cleantech Venture Forums(TM), comprehensive market research services and reports, online proprietary database of pre-screened companies, online deal flow, and online directory of investors active in cleantech. In addition, they provide information services including the twice a month market intelligence newsletter Cleantech Capital Alert and the quarterly Cleantech Venture Monitor(R) report that tracks and analyzes all cleantech venture investments, M&As and IPOs in North America and Europe.
Over $500 million has been raised by companies that presented at the Cleantech Venture Forums(TM) since 2002. The organization has tracked and analyzed more than $10.2 billion of North American venture investment in cleantech since 1999 and all European cleantech investments over the past three years. They have expanded their database to include all M&As and IPOs in cleantech in North America and Europe.
Further information can be found at www.cleantech.com or by calling (+1) 810-224-4310.