
03
G R E E N C O A T
U K W I N D
Outlook and Strategy continued
The Company is investing in a mature and growing
market, and the Board believes that there should
continue to be further opportunities for investments
that are beneficial to shareholders.
The Company regularly reviews its capital allocation
policy by considering a range of options to optimise
returns to shareholders. In October 2023, as part of
this consideration, the Company announced an
increase in its annual dividend target for 2024 to
10 pence per share, an increase beyond December’s
RPI of 5.2 per cent. The dividend with respect to the
final quarter of the year will be 3.43 pence per share,
taking the annual dividend for 2023 to 10 pence
per share.
The Company also announced a £100 million share
buyback programme. The Company has bought back
14 million shares to date at an average cost of
142.1 pence per share.
The Company maintains a disciplined approach to
acquisitions, only investing when it is considered to be
in the interests of shareholders to do so. With the
Company’s share price currently trading at a discount
to NAV, the alternatives for capital allocation warrant
significant consideration.
We will also continue to look at opportunistic
disposals.
Through strong cash flow and dividend cover, coupled
with our disciplined approach, we are confident in our
ability to continue to meet the objectives of dividend
growth in line with RPI and capital preservation in
real terms.
Health and Safety and the Environment
As a responsible investor in operating wind farms, the
Company takes its health and safety responsibilities
very seriously. We work with our Investment
Manager to promote the highest standard of health,
safety and environmental management practices in
managing our portfolio of investments. Detailed key
performance indicators and the results of audits are
regularly reviewed by the Board and action taken
where necessary. We continue to monitor the
standards maintained by the operators of our
wind farm investments, to ensure that these are at least
in line with the wider industry, while seeking
continuous improvement.
Climate Change and Sustainability
As a Company investing in wind farms, our strategy
and activities naturally make a positive contribution
towards the worldwide goal of achieving a net zero
carbon emissions economy and limiting global
warming to 1.5°C. The Company also considers the
recommendations of the Taskforce for Climate-related
Financial Disclosures (“TCFD”). Detailed disclosures
can be found in the Strategic Report on
pages 29 to 37.
The Company qualified under Article 9 of the EU
Sustainable Financial Disclosure Regulation (“SFDR”)
in 2023. The Company’s Investment Policy supports
the environmental objective of climate change
mitigation that helps to facilitate the transition to a low
carbon economy. The Company will continue to
provide periodic reporting as required under Article 9
of the SFDR in its Annual Report.
In 2023, the Financial Conduct Authority published its
final rules regarding Sustainability Disclosure
Requirements (“SDR”). The Company, with support
from the Investment Manager, will consider the rules
and work to meet any obligations of the SDR in the
coming financial year.
The Board, Governance and Executive Management
At the AGM on 28 April 2023, Shonaid Jemmett-Page
retired from the Board and Nick Winser assumed the
role of Senior Independent Director. On behalf of the
whole Board, I would like to thank Shonaid for her
excellent contribution, first as Chairman of the Audit
Committee and then as Chairman of the Board. With
Shonaid being the last Director who was with the
Company at IPO, the succession of the whole Board
has now taken place. I am delighted to have taken over
as Chairman and look forward to the Company
continuing to deliver shareholder value.
On 1 May 2023, Jim Smith joined the Board bringing
his extensive experience from the electricity industry
including in offshore wind asset management, notably
leading SSE’s renewable business. Jim will oversee the
performance of the Investment Manager’s asset
management activities.
On 1 March 2024, Abigail Rotheroe will join the Board.
Abigail has extensive experience in the investment and
asset management industry, with a focus on ESG.
Abigail’s appointment broadens the experience of the
Board at a time when ESG considerations are
becoming a major factor in the sustainability of the
investment industry.
At the forthcoming AGM, Martin McAdam will retire
from the Board and on behalf of the Board, I would
also like to thank him for his services as a non-executive
Director of the Company since his appointment in 2015
and for his wisdom and insight.
The annual internal evaluation of the Board raised no
significant issues. The Group’s governance is further
described in the Corporate Governance Report on
pages 50 to 55.
Chairman’s Statement continued