London Borough of Wandsworth Pension Fund, London, committed £40 million ($51 million) to Octopus Energy Transition Fund managed by Octopus Energy Generation, a unit of Octopus Energy Group.
The pension fund's spokesman said that the investment will add diversification in the £2.8 billion pension fund's portfolio, help deliver strong returns and contribute to the fund's 2050 net-zero commitment.
The pension fund is working to achieve a 60% reduction in carbon emissions of its portfolio by 2030.
The strategy invests in technologies aimed at decarbonizing the heating and transport sectors of the economy.
The pension fund has invested £80 million in energy transition strategies and £110 million in renewable infrastructure, the spokesman added.
