L&G backs 10,000-home net zero tech company

Legal & General Capital has invested in a net zero digital company with a 10,000-home pipeline. The group’s alternatives arm has backed Sero Technologies to support housebuilders, developers and housing associations to transition housing to net-zero carbon. LGC has teamed up with mortgage provider Hodge to provide £5.5m for the energy technology and services company. Cardiff-based Sero Technologies was founded in 2017. It uses digital tools to design and deliver low-carbon solutions for new and existing housing – for example, creating tailored energy retrofit plans, building passports and smart home energy management systems. The company was established with a focus on social housing providers facing challenges around regulation and funding, as they look to meet net zero targets. Through partnerships with housing providers it has a pipeline of 10,000 homes. The new investment will allow Sero to broaden its offering, to deliver new green financial products with institutional partners, banks and building societies. LGC recently appointed Laura Mason as chief executive to grow the company’s alternative assets to £5bn by 2025, generating £600m in profit by 2050. The investor specialises in early-stage capital for new businesses and has backed ESG ventures in a range of areas, including solar photovoltaic panels, electrical vehicle charging and ground-source heat pumps. LGC’s investment in Sero will also support the group’s commitment to deliver net-zero emissions from 2030 through various other businesses, such as its modular housing business, BTR funds and housebuilder Cala Homes. John Bromley, head of clean energy at Legal & General Capital, said: “Housing is a major contributor to carbon emissions, requiring some of the most challenging and immediate overhauls of any sector. “As an energy transition investor, we are aiming to support the scale-up of innovative businesses capable of delivering the solutions needed to reduce emissions throughout the economy.” James Williams, chief executive of Sero, added: “Improving the energy efficiency of our homes can provide long-term economic benefit and comfort to residents, as well as reducing carbon emissions. This investment is therefore a huge milestone for Sero, as we grow and bring new products to market to help the UK in its delivery of net zero.” To send feedback, e-mail emma.rosser@eg.co.uk or tweet @EmmaARosser or @EGPropertyNews Image by mehrunissa from Pixabay