The financial sector has a crucial role to play in addressing climate change. At EFG Hermes, we consider ourselves at the forefront of the fight to advance clean and sustainable energy through our investment portfolio.

We believe our actions in this area can have tangible impact towards achieving the goals and targets articulated during 26th UN Climate Change Conference of the Parties (COP26) in Glasgow in November 2021.

On a much smaller but still critical scale, we also seek to address sustainability through minimizing our carbon footprint internally by adopting cloud-based solutions and adhering to a strict resource conservation and responsible consumption policy.

Vortex Energy is a renewable energy investment platform and a core pillar within the Private Equity division of EFG Hermes. Formally established in 2015, Vortex Energy has a global mandate to invest in clean energy opportunities on behalf of sovereign, institutional, and strategic investors.

Beyond the sector focus of its investment mandate, Vortex Energy maintains a firm commitment to sustainable and responsible investing. In partnership with EFG Hermes and the entire Private Equity division, Vortex Energy is proud that all of its business practices are formulated, evaluated, and executed in accordance with a robust sustainability and ESG strategy that supports the United Nations Global Compact and upholds the United Nations’ Principles for Responsible Investments.

Since inception, Vortex Energy has deployed, managed, and harvested capital across three fund vehicles, focusing on efficient portfolio management and maximizing its environmental and social impact. From 2015 to 2020, Vortex Energy delivered attractive returns on an absolute and relative basis, achieving a cash-on-cash multiple of 1.4x and a blended return of c. 13%. Additionally, Vortex Energy delivered 4.6 terawatt hours (“TWh”) of clean energy, which displaced approximately 4.5mn metric tonnes of carbon dioxide equivalent (“MTCO2e”).

We are at the forefront of regional and global efforts to advance clean and sustainable energy. Thankfully, the goal has never been clearer: 1.5 degrees centigrade (“1.5°C”). Estimated by a consensus of climate scientists and further agreed by global leaders under the Paris Agreement of 2015, 1.5°C is the preferred maximum temperature rise that can be tolerated if we are to protect ourselves from the greatest consequences of climate change.

In order to limit the rise of global temperature to less than 1.5°C, we must reduce greenhouse gas (GHG) emissions by at least 80% before 2050, but the commitment is now. Furthermore, unless we reduce GHG emissions by at least 50% before 2030 , the probability of achieving the 2050 goal is exceedingly unlikely.

Both public and private sectors have shown tremendous resiliency to come together, even amidst COVID-19, to support climate action. Large-scale investment to transform the global energy sector and transition to a low-carbon society is crucial. For Vortex Energy, this is both a call to action and an opportunity for continued leadership.

In July 2021, Vortex Energy IV, LP (“Vortex IV”)- Vortex Energy’s flagship fund and fourth investment vehicle -reached first close of USD 200mn (including a USD 25mn conditional commitment), which is anchored by EFG Hermes and Abu Dhabi sovereign institutional investors and family offices, among others, toward a fund target of USD 750-1,000mn. For Vortex Energy, this milestone marked the formalization of a new global investment strategy and alignment with its investors about the importance of the energy revolution currently underway.

In October 2021, Vortex IV executed its first investment by entering into a definitive agreement with Ignis Energy Holdings (“Ignis”), the parent company of Ignis Group, a Spanish independent integrated renewable player. Through the transaction, Vortex IV will inject over EUR 625mn into Ignis via a series of capital injections in order to fund its high growth plans for a >20 GW platform and transform it into a fully integrated renewable IPP in Spain and other geographies.

Following the partnership with Ignis, Vortex IV will deploy critical capital across the globe to spur the clean energy transition. These investments will benefit from an accelerating shift towards clean energy, reinforced by strong market fundamentals and supportive regulatory frameworks, in a sustainable and growing sector that is destined to continue attracting new capital inflows over the next two decades.

Leveraging its investment acumen and agile perspectives, Vortex Energy will provide investors with risk-managed exposures to a balanced portfolio of energy transition assets utilizing proven and competitive technologies across the entire asset lifecycle and target double-digit investment returns with a yield component.

These verticals include generation (utility scale solar PV, on/offshore wind, hydropower, biomass, distributed generation), storage, EV charging facilities, as well as supply- and demand-side energy services. The geographical focus is developed and developing European countries, North America, Latin America, and Australia

Vortex Energy continues to honour its responsibilities as a global citizen, and its platform demonstrates that its present commitment is unwavering. Importantly, Vortex Energy’s integrated investment platform supports the construction of sustainable infrastructure and the advancement of efficient technologies required to secure our energy future.

In December 2021, Vortex Energy received industry recognition for its pioneering and vital work, winning EMEA Renewables and Energy Transition Solar Deal of the Year at the IJInvestors Awards 2021 for the sale of a controlling stake in the 365MW Solar PV portfolio in the UK (Vortex Energy III).

EFG Hermes is pioneering the use of technology solutions to transform its business, create value and ensure a sustainable future. Our green business model is designed to ensure both maximum resource efficiency and optimal business returns across our operation.

A key component of this strategy is the gradual migration to cloud computing and virtual services wherever possible to reduce the Group’s carbon footprint. By necessity, the COVID-19 pandemic has accelerated this transformation and created more urgency in developing solutions for telecommunication. We have developed and applied a robust work-from-home (WFH) system designed to provide a seamless work environment. We are also committed to replacing obsolete hardware with energy efficient technology and to minimizing our e-waste through recycling.

To ensure the security of all communication, data, and transactions, EFG Hermes has placed the utmost importance on implementing appropriate cybersecurity solutions in tandem with the drive towards a virtual future.

Our proactive adoption of online conferencing solutions has also meant that our flagship One-on-One conferences have been held virtually with much success. This has translated into reduced air travel by attendees with an accompanying reduction in GHG emissions.

One of the cornerstones of our digital transformation is our partnership with Microsoft using a multi-objective strategic approach encompassing innovation on the business front, workforce upskilling and environment renovation with the future in mind. Our cooperation is based on a three-year agreement to strengthen our technical build and introduce new cloud technologies in collaboration with Microsoft’s teams and partners. It also includes the development of strategies for multiple areas of business, such as brokerage, leasing, marketing, HR and valU, that would build a digital transformation roadmap.

The Principles of Sustainable Software Engineering are a core set of competencies that define sustainable software applications. The EFG Hermes Development team has adopted these tenets in throughout its operation, from software development and architecture to hardware selection and data centre design.