ESG investment initiative of the year, North America: North Sky Capital

Project Golden Bear

North Sky Capital's Low-Income Communities (LICs) investment initiative has claimed top spot for ESG initiatives in North America, for its investment strategy combining positive social and environmental impact objectives.

By January 2022, North Sky raised $200 million with the aim of funding new clean energy, waste and water infrastructure projects that advance sustainable economic development in underinvested communities, create jobs, and provide for cleaner air, land, and water in LICs, which are disproportionately impacted by environmental hazards, it said.

Founded in 2000, North Sky has deployed $1.2 billion across several impact funds under its two strategies: impact private equity (secondary strategy) and sustainable infrastructure (direct strategy). Investments are aligned with the UN Sustainable Development Goals (SDGs) and their target indicators, it says.

The LIC initiative is spread across two parallel investment vehicles: its Infrastructure Investment Fund (IIF) focused on clean energy, waste and water projects in designated Qualified Opportunity Zones throughout the US; and its National Impact Fund (NIF), a Qualified Community Development Entity focused on clean energy, green manufacturing and sustainable agriculture projects and that takes advantage of the US New Markets Tax Credit Programme, which incentivises community development and economic growth through tax credits.

As part of the strategy, IIF committed $18 million of preferred equity to fund the development and construction of Project Golden Bear, a new wastewater methane-to-renewable natural gas project located at the Victor Valley Water Reclamation Authority's existing wastewater treatment facility in California.

To read more about North Sky's LIC initiative and its strategy to invest in methane capture, click here.