Komulainen Embraces Energy Transition with Infra Switch
Responsible investment head leaves Aegon UK to take up the “challenge and opportunity of our lifetime” at Quinbrook.
Renewable energy specialist Quinbrook Infrastructure Partners has made a significant new investment, based on a proven track record in climate strategy, sustainability and stewardship.
The global investment manager has hired Hilkka Komulainen as its Global Head of Sustainability and Impact, who joins from defined contribution (DC) pension provider Aegon UK. She spent more than three years at the £203 billion (US$256.9 billion) AUM asset owner, establishing and leading its responsible investment (RI) team.
In her new role, Komulainen is charged with leading Quinbrook’s global sustainability and impact strategy, and will sit on the company’s investment committee. Established in 2015, the specialist investment manager is focused on energy transition infrastructure investments in Australia, the UK, and US.
“The energy transition is both an immense challenge and the investment opportunity of our lifetime,” Komulainen told ESG Investor. “The challenges of the energy transition are evolving rapidly alongside geopolitics, supply chains, and energy policy, so our practices must keep evolving as well.”
The International Energy Agency’s latest World Energy Investment report has predicted that US$2 trillion will be channelled into clean energy technologies and infrastructure in 2024. Meanwhile, research provider BloombergNEF’s ‘New Energy Outlook 2024’ released in May projected the transition to a fully decarbonised global energy system by 2050 would cost US$215 trillion, up from the US$196 trillion forecast in its 2023 edition. This includes investment to scale solutions enabling the energy transition, such as jobs, skills and local economic capabilities and industry, which is a key focus area for Quinbrook, according to Komulainen.
The firm has more than 17,000 megawatts of operational, construction and development stage renewable energy supply capacity across its three focus regions. This includes direct investments in battery storage, grid support, renewable fuel, waste reduction, and water conservation, among other areas.
During the past year, Quinbrook has held three successful fund closings representing more than US$4.3 billion in aggregate investor commitments. It was also named as one of the world’s leading solar energy investors by insight provider Preqin’s ESG in Alternatives 2023 report.
“I’ve spent over a decade working on climate strategy, sustainability and impact investment, supporting various investor strategies to navigate the climate transition – expertise that will now be at the service of Quinbrook and its investors,” said Komulainen.
“Having built and led the RI team for Aegon’s DC pension business in the UK and overseen our first climate solutions allocation, I see a critical need for energy transition investing that is additional, scalable and considers the systemic complexity of decarbonising our industries and power sector.”
Increasing investments
At Aegon UK, Komulainen oversaw the asset owner’s climate and stewardship efforts, led on its energy transition investment, and served on the pension provider’s investment leadership team. She also set short-, medium- and long-term climate targets as part of the pension provider’s climate roadmap, which has already achieved a 40% reduction in its workplace default funds’ carbon footprint since 2020.
At Quinbrook, Komulainen will be responsible for deploying capital to other climate solutions in addition to clean energy. This includes grid stability infrastructure and vertically adjacent technologies, as well as creating and executing sustainability strategy at portfolio companies to support investment performance and sustainability outcomes.
According to the International Renewable Energy Agency’s (IRENA) World Energy Transitions Outlook 2024 released last month, investments in renewable power, grids and flexibility, energy efficiency and conservation must “increase dramatically” and total US$31.5 trillion between now and 2030 to meet renewable energy and efficiency goals.
“As the need becomes more acute for climate solutions investments to support rapidly growing energy demand, climate change mitigation and adaptation, it’s clear that there are significant opportunities ahead for Quinbrook,” said Komulainen.
“I’m excited to roll up my sleeves and am looking forward to working across the company to advance some of the new themes we are exploring, including biodiversity and nature risks and credits, responsible sourcing of raw materials and decarbonising hard-to-abate sectors.”
Komulainen previously held roles at the Organisation for Economic Co-operation and Development and the Principles for Responsible Investment. She also co-chaired the UK Department for Work and Pensions’ Taskforce on Social Factors, which unveiled final guidance to help UK pension fund trustees improve their assessment of social factors in investment decisions and stewardship earlier this year.
Following her departure, Aegon UK has integrated RI within its wider investment proposition team, led by Managing Director Lorna Blyth. Komulainen’s climate responsibilities have passed to Pauline Vaskou, Climate and RI Strategy Lead, while Stewardship Lead Samantha Chew has absorbed her stewardship activities.
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