After 12 months of development, Bristol-based PyTerra has launched its concept for the PyTerra Xchange, a platform designed to offer corporates a simple way to meet their Corporate Social Responsibility (CSR) commitments by providing much needed investment in local climate change projects.
The PyTerra Xchange is piloting a new investment vehicle called ‘sponsored finance’. It works by creating an investment fund, enhanced with sponsorship benefits, on behalf of corporates. The finance is used to support local projects across households, businesses and community initiatives, specifically those in the low carbon and renewable energy (LCRE) sector.
Research and consultation has shown how institutional investors and stakeholders increasingly want their corporate clients to show that they are making meaningful climate-related impacts. Corporations have CSR policies with targets and commitments which can be satisfied by making a local impact, but they don’t have the local connections or resources to identify where, and how, they should offer support. This pressure needs to be seen in the context of the national climate change agenda.
A recent PwC report ‘Unlocking capital for Net Zero infrastructure’ commented that if a traditional approach to infrastructure investment continues to be taken, over 50% of the £41bn annual investment needed in the UK to create sufficient Net Zero infrastructure will not be delivered. One of the first organisations anticipated to participate in this scheme is Bristol Energy Cooperative which is actively seeking corporate sector engagement in low carbon energy schemes such as new housing microgrids, grid servicing batteries and solar PV.
To support both corporate investors and solution suppliers in the initiative, the PyTerra Xchange will also be releasing its Local Opportunities Map later in 2021. Focusing on Bristol as the pilot city, this map will act as a listing for all low carbon projects which are seeking investment. As a city, Bristol has a strong focus on sustainable activity and there is a rich ecosystem of innovation and emerging projects which need vital investment to become a reality. It also has a strong corporate community with historic support for community endeavour.
This initiative should therefore find a receptive audience as it reaches out to Bristol stakeholders. If you want to find out more information about the PyTerra Xchange, please see the introductory video .