Physical asset investor Commerz Real, a member of Commerzbank Group, announced today the launch of Klimavest, the first real asset impact fund to target private investors. Commerz Real stated that the new fund will aim to build a portfolio of renewable energy generation, sustainable infrastructure, mobility and forestry investments, with a target value of at least €25 billion, consisting of approximately €10 billion equity capital.
Johannes Anschott, the Chief Executive Officer of Commerz Real, said:
“In order to attain the climate targets of the European green deal it is necessary to step up investments considerably. With Klimavest we intend to make a substantial contribution towards the transition to renewable energy and demonstrate that this is possible in combination with an attractive return and appropriate risk for private investors.”
According to Commerz Real, the new fund will specifically target investments in assets which make a tangible, demonstrable contribution to a reduction in carbon dioxide (CO2) emissions. The company estimated that it would be possible to reduce carbon dioxide emissions by 300,000 to 400,000 tonnes per annum with an initial investment of one billion euros. The fund will employ strict sustainability parameters pursuant to the current EU Taxonomy Regulation.
Sabine Schmittroth, a member of the board of management of Commerzbank, said:
“The interest of our clients in sustainable financial investments has increased considerably. The investments in our sustainable asset management have increased by 50 per cent this year, to about 350 million euros at present. This trend will intensify. Klimavest is therefore the right product at the right time. Our clients now have an additional offering for sustainable investments.”
The Klimavest fund will target annual returns in the 3% – 4% range. Investors can participate with sums of €10,000 or greater, with an investment horizon of at least five years recommended. Commerz Real stated that investors will be provided with regular reporting detailing the positive climate impact of the fund’s assets, and will also be able to assess the personal impact of their investments using a digital CO2 calculator.
Tobias Huzarski, Head of Impact Investment at Commerz Real, said:
“With Klimavest we are closing a significant gap in the market. We are connecting the fields of sustainability, real assets and digitalisation, so as to deliver a solution to private investors to access to downside-protected investments whilst making a positive ecological impact.”