Eastern Bay Energy Trust’s new strategic direction points to transformational community change

Aaron Milne overlooking the Eastern Bay. Photo by James Stanbridge.

As part of their new vision to enable pride, prosperity, and people across the Eastern Bay of Plenty, the Eastern Bay Energy Trust (EBET) is announcing a shift in focus away from transactional grants, towards transformational community change and impact investing. 

Impact investing is defined as investments that generate measurable social or environmental benefits, as well as financial return. As EBET Chairman Aaron Milne explains, this nature of investing has been part of the Trust’s remit for some time – including the transition five years ago to 100% ownership of Horizon Energy Group (HEG), in a successful bid to retain ownership and employment in the region. “The Trust has always had an interest in investing in great outcomes for the Eastern Bay,” says Milne. “But now feels like the right time to shift our focus more firmly towards creating the maximum possible benefit for the wider community.”

Initially developed late last year, the strategy’s implementation has been accelerated, due in part to the impact of COVID-19. “As 100% shareholder, the Trust’s goal is to ensure Horizon Energy Group is well positioned to flourish as the economy recovers,” explains Milne. “The boards of both EBET and HEG are in alignment on what the path to recovery looks like, and we’re committed to supporting HEG during this process.”

To ensure Horizon’s success post-COVID-19, EBET has agreed to a significantly lower dividend for the coming period – which will naturally see a decrease in the community funding available to the Trust this year. 

With a diminished pot of funds to draw from, the Trust is implementing a highly strategic approach to how and where those funds are dispersed. That means seeking out opportunities for smaller spend that ultimately leads to greater impact, and investing in projects that fall under one or more of the Trust’s three strategic pillars – community pride, energy evangelism, and prosperous communities. 

Impact investing already exists in the Trust on a smaller scale, with investments in the local kiwifruit industry, including Opotiki Packing and Coolstorage Ltd (OPAC). Going forward, the Trust will look to increase its local investment footprint. Job creation, innovative ways to benefit Eastern Bay residents, and long-term growth are all set to be major focal points.

The shift in focus is likely to have an effect on funding for some smaller-scale community projects. However, the Trust emphasises that it will be a reduction, not an elimination. “As and when the Trust’s income returns to normal, we’ll look to resume our usual funding for the Eastern Bay’s many fantastic community groups,” says Trust Manager, Rawinia Kamau.

In the meantime, the Trust is looking forward to supporting a new phase of growth for the region – particularly with the upcoming influx of large-scale projects made possible by the Provincial Growth Fund (PGF). The Trust believes these projects will lead to a boost in quality of life for Eastern Bay residents, and aims to ensure they not only proceed, but also deliver as many employment and social benefits as possible.

As COVID-19 continues to have a material impact on the local regional economy, the Trustees recognise they have a role to play in the coming recovery. “We also recognise that this particular moment in time may well bring opportunities to change the region for the better,” says Milne. “The Trust has a very unique opportunity to support that positive change.”