The investment, the first by an Australian superannuation fund in a peer-to-peer lender, will see the ethical super fund invest in RateSetter’s National Clean Energy lending market.
It will fund loans to creditworthy borrowers seeking finance to purchase clean energy products, including solar panel and battery systems.
Peer-to-peer lending platforms such as RateSetter, headed by CEO Daniel Foggo, connect investors with borrowers, exposing lenders to a portfolio of unsecured loans with repayments typically made monthly.
In making this investment, Future Super joins over 800 retail investors, the federal government’s Clean Energy Finance Corporation (CEFC) and several authorised deposit-taking institutions already funding loans designed to help make renewable energy products available to a wider range of Australian consumers.
To achieve mass adoption of renewable energy technologies in Australia, affordable finance for everyday people is critical.
RateSetter is a United Kingdom operation with an Australian arm that has processed more than $500 million in loans since its launch in 2014 with RateSetter processing $6 billion worth of loans globally.
RateSetter is aligned to Future Super’s commitment to sustainable and impactful investment, and facilitating competitive consumer finance that will dramatically accelerate broad adoption of clean energy technologies like solar and battery.
Commenting on the landmark partnership, Mr Foggo said, “Future Super’s investment is the first of its kind and an extraordinary validation of our model’s appeal to a broad range of investors.
“We applaud their leadership of their sector and would encourage more super funds to consider impactful investing.”
A partnership with Future Super is a natural fit, Mr Foggo continued.
“Future Super and RateSetter are committed to empowering Australians to make rewarding financial choices that will benefit households, the economy and the environment.”
Discussing the partnership, Future Super Managing Director Adam Verwey said, “Superannuation is an incredibly powerful tool to help build Australia’s renewable energy future.
“In fact, just 7.7 per cent of superannuation can get Australia to 100 per cent renewable energy.
“At Future Super, we have strict ethical investment criteria that we follow when adding to our portfolio, and we choose options that we believe will produce superior returns for our members, while also positively impacting the environment.
“We’re thrilled to be the first super fund to fund a peer-to-peer lender that is helping the sustainable energy revolution.”
Future Super was founded by a group of investors in 2014, led by former national director of GetUp!, Simon Sheikh.
Future Super’s returns have regularly outperformed its investment objectives, showing rewarding investment should not come at the cost of a sustainable future.
Its diversified, fossil- free portfolio is investing millions in new renewable projects across Australia and around the world.
RateSetter is on track to become Australia’s leading renewable energy lender, estimating its green markets have led to carbon dioxide (CO2) emission reductions of 18,200 tonnes to date.
RateSetter is also the sole administrator of the SA Home Battery Scheme giving up to 50,000 South Australian households access to $100 million in State Government subsidies and $100 million in low-interest loans made available by the CEFC.
The scheme has added to an extensive installer network of 491 accredited groups and manufacturing partnerships with Tesla, LG and Sonnen.