Southwark Green Investment
Overview and how to invest
Southwark Green Investment is your chance to make a low-risk, fixed return and fund green projects in our borough. We're looking to raise £6 million by 2030 through a series of investments to help fund local climate work.
So far, we’ve raised £1.5 million through two rounds, hitting our target early on both occasions. This is thanks to a record-breaking number of local residents who invested.
We are currently planning our next round of investment and will be making an announcement in the coming weeks. In the meantime, you can sign up to get notified directly when we have more news.
What is Southwark Green Investment?
Southwark Green Investment is a chance for anyone to invest in green projects in Southwark and receive a low-risk, fixed return. It is a local authority security between the investor and the council. This means you are lending money to the council so your capital is at risk, but the risk is much lower than lending money to a company. It is also known as a Community Municipal Investment, which is like a green bond.
We are aiming to raise £6 million by 2030 across several phases. This makes it the UK's biggest-ever council community investment scheme for green projects. It follows other successful council investment schemes like this right across the country.
Investment terms
Each round of investment will offer a fixed interest rate each year across a five-year term. During this five-year term, your capital will be held in the investment.
Regular returns of interest and capital are paid every six months across the five-year term. Returns are paid into your Abundance account for you to withdraw or reinvest as you wish.
You can sign up to get notified first about future raises and what the available interest rate will be.
What projects will be funded?
It will help fund climate projects in Southwark. This could include a lot of different projects from our climate programme, including:
- renewable energy and heating projects. Including things like solar panels and heat pump
- green building projects that help our homes and buildings use less energy
- active travel schemes that encourage cycling or walking. Like more cycle hangars and electric vehicle charging points
- waste projects that help to prevent, reduce or recycle waste
- projects that help to protect against things like flooding and overheating. Also known as climate resilience projects
- projects that protect and enhance our wildlife and natural environment
How to invest
We're working with ethical crowdfunding platform Abundance Investment, who are arranging the investment for us. There is a dedicated page on their website for this investment.
To get started, you will need to set up an account with Abundance Investment, who are arranging this investment on behalf of Southwark Council. It is a simple, free process.
As part of this, Abundance will perform an online ID check, which is required as part of Financial Conduct Authority (FCA) regulations.
You can then deposit money and invest right away. You deposit money into your Abundance account from your bank account to invest.
Returns are paid every six months across the term of the investment. They will be paid into your Abundance account for you to withdraw or reinvest as you wish.
For support, visit the Abundance help centre, email support@abundanceinvestment.com or call 0203 475 8666. A member of their customer support team will be able to help.
Risk warning
Investments are long term and may be hard to sell. This is not a savings account. Changes in market interest rates may affect the value of your investment if you sell before maturity. This content has been approved as a Financial Promotion by Abundance who are authorised and regulated by the Financial Conduct Authority (525432). Approval date: 6 September 2024.
Frequently Asked Questions
How much can I invest?
You can invest from as little as £5. There is no maximum amount you can invest.
You can invest and get tax-free returns by investing through an Innovative Finance Individual Savings Account. If you choose to do this, you can only deposit £20,000 of new money to invest each tax year.
Please only invest what you can afford, there is no guarantee you can access your invested capital before the end of the term.
What interest rate will I get?
Each round of Southwark Green Investment will have its own interest rate. This will be set prior to the launch. You can sign up to get notified about any future raises and be the first to find out what interest rates will be on offer.
How long will it take to see a return?
Regular returns of interest and capital are paid every six months across the term of the investment. Returns are paid into your Abundance account for you to withdraw or reinvest as you wish.
Do I have to pay tax on my investment returns?
Returns on your investment are the same as income you receive from other savings and investments. You will need to pay tax on your returns if you receive income above the Personal Savings Allowance, unless you invest through an Innovative Finance Individual Savings Account.
For more information on how much tax to pay on savings interest, visit the government website.
Can my business invest?
Yes, any company can set up an account to invest just as an individual can. There are slightly different requirements for the ID check process, but the Abundance team will help them through that.
What if I change my mind?
You have a 14-day refund period from the date you invest to cancel your investment and receive a full refund.
Can I get access to my money before the end of the investment term?
You should plan to hold this investment for its full term. But, if you do need to access your capital earlier, you can list it for sale on the Abundance marketplace. That means other Abundance investors can offer to buy your investment. There are no fees for this service. However, this doesn’t guarantee that you will receive the full amount you invested back, as this depends on what other investors are willing to pay for your investment.
What happens if the funding target isn’t reached?
The investment will fund green projects in Southwark regardless of whether we reach the full funding target.
How can I be sure that the money will be used for what is said?
The Green Finance Framework sets out how Southwark Council intends to manage the investment. It means that funds raised can only be used to help deliver on eligible green projects from within this framework. Abundance will provide oversight on the use of funds across the investment term.
This investment is described as ‘low risk’ – what does that mean?
All investments carry risk. However, the risks of lending to councils are different from those of investing in companies.
It is important to remember that this is an investment, not a savings account. As a result, returns are not guaranteed. The investment is also for a fixed term, which means there is no guarantee you can access your invested capital before the end of the term.
When you invest in a scheme like this, you are lending money to the council. If the council runs into difficulties, there may be delays in receiving your interest or getting your money back. However, government legislation requires that councils maintain a balanced budget to stay financially viable. This means that we are legally obliged to bring our budget into balance. Even if a council does have financial difficulties, unlike a company, the council cannot be declared bankrupt to avoid repaying its debts. This means that no UK council has ever failed to pay back an ordinary loan.
Who is Abundance Investment?
Abundance Investment is the ethical crowdfunding platform arranging this investment on behalf of Southwark. It is regulated by the Financial Conduct Authority.
The company provides a website for investors to set up their accounts, make their investments, receive returns and get updates on the scheme.
Abundance has been operating for over a decade and has helped deliver other successful council schemes from The Cotswolds to Camden.
Find out more about their investment principles on the Abundance website.
Risk warning
As with all investments your capital is at risk. Investments are long term and may not be readily realisable. This content has been approved as a Financial Promotion by Abundance who are authorised and regulated by the Financial Conduct Authority (525432). Approval date: 8 May 2024.