USS invests in Climate Change Capital

The £30bn scheme is one of four investors putting money into the company, which specialises in investment opportunities created by the low carbon economy.

The direct private equity investment is part of the scheme’s alternative assets programme.

USS currently invests around 5pc of its assets in alternatives but has a target allocation of 20pc to be reached over the medium term.

USS chief investment officer Peter Moon said: "We believe that the low carbon investment arena is poised for considerable growth in the coming years – and CCC is well positioned to make the most of these trends.

"As a long term responsible investor, USS holds the view that the fund should take steps to reduce the risks associated with climate change. Across all asset classes, we aim to incorporate into our investment process an understanding of the dynamics of climate change."

USS head of alternative assets Michael Powell added: "We view this as a unique opportunity to capitalise on the growing appetite of both institutional and retail investors for investments which focus on the opportunities created by policies addressing climate change.

He added: "As we build our private equity portfolio we will continue to make investments both in funds and in direct investments which we expect to generate strong risk adjusted returns for our members."