Sero has secured further investment of £6m from Welsh bank Hodge and Legal & General Capital (LGC), a clean energy transition investor and the alternative investment arm of Legal & General Group, following initial investment from both in December 2021. Founded with the mission to enable zero carbon homes, Cardiff ‘B-Corp’ Sero provides expert products & services to help the planning, funding, implementation, and operation of homes along their pathway to net zero carbon.
Hodge Bank led the current funding round, bringing the combined equity stake of both investors to 44%. Sero is excited to accelerate its journey with the continued confidence and backing of both its Series A investors at a key stage in the company growth.
Sero uses novel digital technology combined with construction expertise to focus on simple and affordable outcomes for residents and property owners, primarily in the social housing sector currently. Their combined solutions support decarbonising existing homes through retrofitting, as well as the construction of new homes such as the award-winning sites at Aspen Grove in Cardiff and Parc Eirin in Tonyrefail.
Since its launch, Sero has also extended its reach and is now working with one of the largest housing associations in England to decarbonise 1,000 homes, alongside its work developing and advising on building net zero homes across Wales.
James Williams, chief executive officer at Sero said: “I’m delighted that Sero has secured further investment from Hodge and Legal & General Capital, following on from the initial investment secured at Series A in December 2021. This is a great vote of confidence in the Sero team, our technology and our ambition to rapidly increase the scale of net zero homes in the UK.
“The cost-of-living crisis has overlaid further urgency in addressing climate change, energy efficiency and affordability in some of the poorest performing homes in Europe, leaving us exposed to increasing fossil fuel prices. So, this investment brings with it the opportunity to invest in our technology and increase the scale of delivery in social housing retrofit and collaboration with financial institutions in addressing the funding gap.”
David Landen, chief executive officer at Hodge, said: “In the 16 months since we made our first investment in Sero we have seen the company go from strength to strength, working with more housing associations in England and also extending its reach to a point where it’s now advising construction companies about how to build more sustainable homes.
“Its ethos is to reduce carbon emissions of peoples’ homes, as well as supporting new developments to be as carbon efficient as possible, all while helping residents live affordably and sustainably. These values are a perfect fit for Hodge, as our mission is to help our customers in the moments that matter, and the climate and cost of living crisis are just that – pivotal moments which we have to work together to reverse and support one another with.”
John Bromley, Managing Director – Clean Energy said: “I’m delighted that LGC has increased its investment in Sero Technologies—they are a great example of how new and growing businesses can power the UK’s shift to cleaner energy. Their work supporting the transition to net zero across the residential housing sector is well-aligned with our ‘inclusive capitalism’ ethos of investing to create social, environmental, and economic benefits across the country.
“Residential retrofitting represents a significant market opportunity both to achieve the UK’s legally mandated target of net zero by 2050, and reduce household exposure to volatile global fossil fuel markets: almost every home in the UK will need to be improved or retrofitted with some combination of enhanced energy efficiency and low carbon heating. We look forward to working with Sero as they accelerate their growth in order to address the climate crisis.”
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Founded with a mission to deliver Net Zero Carbon in homes, Sero is a certified B Corporation working with developers, landlords and financial institutions to help provide the digital products and technical expertise needed to decarbonise the c.27m homes of the UK. Sero’s pragmatic approach provides an end-to-end solution that starts with a digital Building Passport that captures the unique nature of each home and then allows the homeowner to plan a stepped Pathway to Zero that best suits their preferences whilst recognising the ongoing decarbonisation of the energy grids. This results in offering the resident the UK’s first “Comfort as a Service” home energy solution, providing customers a combination of home energy optimisation and services that keeps their preferred comfort settings, whilst reducing their effort, costs and carbon footprint.
For more than 50 years, Hodge has helped its customers achieve their financial goals with the skills and knowledge to ensure it creates products and delivers service for the moments that matter. Over the years it has created mortgage products to support the older than average borrower and has also been able to use its experience in other specialist areas to grow its product offering to better serve brokers and customers alike. Whether it’s with their personal mortgage, savings, or as a commercial client, Hodge is
there to support the thousands of customers who trust us with their finances. Hodge is 79% owned by the Hodge Foundation, a charity supporting welfare, medical and academic endeavors. More information can be found on the website www.hodge.co.uk and follow @HodgeBank on Twitter.
About Legal & General Capital
Legal & General Capital (LGC) is Legal & General Group’s alternative asset platform, creating assets for Legal & General Retirement and third-party clients in order to achieve improved risk-adjusted returns for our shareholders. LGC has built its capabilities in a range of alternative sectors, including in residential property; specialist commercial real estate; clean energy; alternative credit; and venture capital, which are all supported by long-term structural growth drivers, meet a financing gap and respond to a scarcity of supply that is underpinned by enduring societal needs.
Its purpose is to invest society’s capital for society’s benefit. Investing in the real economy and supporting the Group’s focus on climate and inclusive capitalism, LGC’s investments create jobs, change lives and contribute towards a net zero carbon future.
Legal & General has invested over £29bn in levelling-up regional economies, including through major UK-wide regeneration schemes and has recently made a commitment to enable all its new homes to operate at net zero carbon emissions from 2030.
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Legal & General Group
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
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