Impact Investing Case Studies
Impact investing case studies
Our key missions are set by our shareholder, The Scottish Government. They are intended to help us positively affect the three grand challenges facing Scotland – the climate emergency, place-based inequality, and demographic productivity change.
These case studies demonstrate the power of impact investing in facing these challenges head on and driving positive change while delivering sustainable financial returns.
Aberdeen South Harbour - Investing in carbon reduction
Aberdeen Harbour is a major £420 million marine infrastructure development geared towards creating a shift towards a net zero economy while simultaneously providing job opportunities in the renewable energy sector.
With £35 million of funding committed, ASH is set to enable supply chain support for offshore wind projects, maintain engineering and infrastructure expertise for a just transition to a low carbon economy, and reinforce the region's reputation as a centre for energy excellence. The project has implemented a Green Port Strategy that includes measures for emissions reduction, quayside electrification, alternative fuels, and sustainable waste management.
ASH is a game-changer in the renewable energy sector and aligns with the Bank's net zero mission. It is expected to add £2 billion to the Scottish economy annually and create around 15 thousand jobs.
The expansion will not only boost economic development but also contribute significantly to Scotland's net zero goals. ASH is an exciting development prioritising environmental sustainability and social impact, and we can't wait to see the positive impact it will have on the region and the sector.
The Social and Sustainable Capital - Investing in people and places
The Social and Sustainable Capital (SASC) - SASH II Fund is dedicated to supporting vulnerable groups in the UK by increasing the supply of high-quality affordable homes and promoting the transition to net zero emissions with sustainable infrastructure by 2040. Since its inception in 2014, SASC has made a significant impact supporting the housing sector.
In 2019, SASC launched the SASH I fund, which raised £64.5 million in impact-focused debt funding for organisations that provide supported housing for vulnerable groups. Building on the success of its predecessor, SASC launched SASH II in November 2022 with a commitment of £15 million, which is expected to unlock at least £20 million in loans for organisations purchasing homes in Scotland.
The SASH II fund aims to create over 1,500 new supported housing bedspaces (over 200 in Scotland) and house over 10,000 people during its lifetime, while also ensuring that the properties meet high energy efficiency standards.
By reducing homelessness and improving the health and wellbeing of vulnerable groups, SASC's impact aligns with the Bank's goals, and utilises comparable measurement and reporting frameworks to deliver real, measurable economic, social, and environmental impact.
Orbex - Investing in future industries
Orbex is an orbital launch services company based in Scotland. In October 2022, the company received a £17.8 million investment to develop its micro-launch vehicles and Spaceport launch site. With a focus on low carbon and high performance technology, Orbex aims to support Scotland's ambitions to become a global leader in commercial space development.
Orbex's innovative technology, including its Prime rocket fuelled by bio-fuel, promotes net zero goals and circular economy innovation. Along with the Sutherland Spaceport's efforts to protect the environment, the investment is expected to create jobs, reduce GHG emissions, and contribute to Scotland's share of the global space market and economic growth.
The investment in Orbex has the potential to make a positive impact thanks to its cutting-edge technology, environmentally-conscious approach, and focus on innovation.