Rest affirms impact investment growth ambition

Rest has affirmed it intends to grow its impact investment allocation and will continue to pursue high quality opportunities following a milestone investment with the Palisade Impact Fund.

The super fund has set a target to achieve a one per cent allocation to impact investments by 2026 and, as its first impact investment, the addition of Palisade Impact to Rest’s portfolio represents an important step towards this ambition.

Impact investing is a key element of Rest’s responsible investment approach and ambition to help members grow their super while contributing to a more sustainable future, said Simon Esposito, Deputy Chief Investment Officer, Rest.

“Significant investment is required to address the scale of climate change and energy transition and the road to net zero creates investment opportunities.

“We are proud to invest with impact and with Palisade.”

The investment with Palisade highlights Rest’s appetite for opportunities focused on generating strong financial returns alongside measurable social and/or environmental benefits.

Australian-based Palisade Impact focuses on assets that target and contribute to practical solutions to social disadvantage and climate change by investing in next generation infrastructure and businesses providing essential services.

“At Palisade Impact we believe that impact investment delivers value and we look forward to delivering a strong return coupled with a strong environmental and social impact for Rest’s members," said Steve Gross, CEO, Palisade Impact.

“I've known the team at Rest for a long time and it's an honour to be working with them again.”

The Palisade Impact Fund supports the development and expansion of assets across three key streams:

• Organic waste to energy conversion: biogas, biofuel & reducing waste and wastewater
• Resource efficiency: technology for smarter and greener energy services
• Digital connectivity and equity: low-cost internet and digital solutions for low socio-economic households.

“Palisade Impact’s investments are likely to play an important role in Australia's economy in the future,” said Mr Esposito.

“The nature and opportunity set of infrastructure assets is changing rapidly with significant disruption to legacy assets through technology developments, decarbonisation and greater consideration of social impacts.

“As a result, it’s important for Rest to have exposure to the next generation of infrastructure assets that have the potential to deliver strong member returns over the medium to longer term.

“We’ll continue to seek quality impact investments opportunities that enhance the financial interests of our members.”