Fudura: playing a pivotal role in the Dutch energy transition

Uniquely Dutch approach

‘Fudura's strong potential to contribute to the energy transition in the Netherlands made it an attractive investment opportunity for us, as PGGM. By investing in Fudura, we aimed to support and benefit from the positive changes in the Dutch energy landscape. We collaborated closely with another Dutch investor, DIF, throughout the development process of Fudura. This partnership with DIF was significant because it represented a uniquely Dutch approach to the investment. As fully Dutch investors, we were able to leverage their local expertise and insights into the Dutch energy market. This collaboration likely facilitated a smoother development process and enabled a more comprehensive understanding of the local landscape.’

Contribution to the SDGs
‘As PGGM we hold a co-controlling stake in Fudura, which means that we have a significant say in the decision-making processes related to their operations and asset management. This level of influence allows us to actively participate in shaping the strategic direction of the company, ensuring that the investment aligns with our long-term objectives and values. Fudura's contribution to the Sustainable Development Goals (SDGs) is notable. It is anticipated that they will receive SBTi (Science-Based Targets initiative, Paris aligned) approval by the end of the year. Fudura primarily supports SDG 7 by reducing carbon emissions through the provision of clean energy and contributes to SDG 9 by enhancing infrastructure and fostering innovation within the energy sector. Its impact is not only substantial but also measurable through specific sustainability targets and initiatives.’

Risks, side-effects AND growth
‘Fudura does exhibit a slightly higher risk-return profile compared to standard core infrastructure investments. However, this elevated risk is offset by the significant potential for impact and growth that the company offers. Our investment strategy recognizes the importance of balancing risk with the potential for achieving sustainable and impactful outcomes, which makes Fudura a strategic fit within our portfolio. One notable side effect that has been addressed is the presence of asbestos in some Fudura projects. We are actively working on mitigating this issue, emphasizing safety and environmental responsibility. Efforts to remove asbestos from Fudura projects demonstrate our commitment to addressing any unintended consequences of our investments and ensuring that they adhere to the highest standards of environmental and societal responsibility. If Fudura were to cause any adverse societal or environmental effects, our response would involve engaging with regulators, customers, and suppliers. The company is already proactive in participating in regulatory working groups, even though it is not a regulated asset itself, to improve the Dutch power markets. This collaborative approach demonstrates our dedication to addressing potential risks and ensuring responsible investment practices.’

Bright future
‘Fudura is positioned as one of our portfolio companies with the highest growth potential. This growth is not limited to its core business of transformers and meters but also extends to new business lines related to energy transition. Fudura's future is bright, with opportunities for expansion, innovation, and a continued positive impact on the Dutch energy landscape, aligning well with our long-term investment objectives.’

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