A pension fund based near Bath has pledged £50m to build 250 affordable and energy-efficient homes as it steps up its investment in positive impact projects across the West of England.
Avon Pension Fund, a £6bn local government pension scheme (LGPS) serving 140,000 members across the Bath and Bristol, already invests in affordable housing nationally.
In line with the Keynsham-based fund’s mission to make an impact locally, it is now focussing on increasing supply in West of England.
The new investment will fund around 250 new homes for up to 1,000 people, a fifth of them in the region.
Avon Pension Fund committee member Cllr Shaun Stephenson-McGall, pictured, said: “There is a real need for affordable housing locally and across the UK.
“This investment will provide energy-efficient, affordable housing for those that need it most including families and key workers.
“This investment will deliver financial returns for the pension fund as well as benefiting society as we help increase the supply of affordable housing.” 
Last year Avon Pension Fund announced an ambition to invest about £175m in local impact programmes.
So far it has pledged £50m to solar farms around the West of England as part of a £230m investment with a group of other pension funds.
The 11 projects will have a generating capacity of approximately 140MWp, equivalent to powering nearly 52,000 homes.
The housing investment is being made through the Octopus Affordable Housing Fund alongside other LGPS funds including Devon, Gloucestershire, Clwyd and London. Octopus has an ambition to develop 5,000 homes in the coming years.
In January Avon Pension Fund agreed a fresh target to achieve carbon net zero by 2045, bringing forward the target by five years from 2050.
This builds on significant work already completed by the fund to make its investments more climate-friendly, including: £400m committed in 2020 to renewable infrastructure and £2bn invested over 2021-23 in climate-aligned sustainable equities.
Avon Pension Fund provides pensions for Bath & North East Somerset Council, Bristol City Council, South Gloucestershire Council and North Somerset Council and other local employers.
