We continue to seek out positive environmental impact projects to allocate capital to via green bonds. In doing so, we have a strong focus on instruments from high quality issuers with strong environmental profiles.
We have purchased a green bond from Rabobank; proceeds of the bond are 100% allocated to new projects focused on renewable energy. One such project is a wind farm in the Netherlands, Windpark Weert. The project is owned by WeertEnergie (a co-operative) and Eneco. With a capacity of 13MW, energy production is due to commence in Q1 2022. As a result, the estimated CO2 emissions avoided are 11,700 tons per annum.
Proceeds of the green bond are fully aligned to the European Union (EU) taxonomy (issuer disclosure), including “do not significantly harm” criteria. Rabobank assesses and manages potential environmental and social risks related to the project.
Rabobank’s sustainability strategy includes a net zero commitment by 2050 including the group’s lending portfolio. The group’s net zero pathway has a focus on mortgages (45% of the book), food & agriculture (26%), small and medium enterprises (SMEs) (13%) and others (leasing, energy etc). As an example, for mortgages, Rabobank has an ambition of having an average “B” energy label for its portfolio by 2024 and “A” by 2030 (from average “C” currently), while helping improve 400,000 homes by at least two energy labels by 2030.
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is no indicator of current or future trends. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice.