Australia’s first sustainability bond launched this week to fund a range of clean energy and green building projects.
National Australia Bank (NAB) placed the $200 million bond for Australian Catholic University (ACU), an organisation dedicated to sustainable practices.
This makes the ACU the first Australian issuer, and the first university in the world, to issue a sustainability bond.
NAB was the first Australian bank to launch both an offshore green bond in March 2017, and a climate bond in 2014.
How do sustainability bonds promote clean energy?
The sustainability bond will be used to fund projects specifically related to green buildings. In addition, it will fund sustainable research and development programs with social impact.
This widens the brief of NAB’s previous EUR 500 million public offshore green bond – the largest ever green bond from an Australian issuer.
Green bonds are used to finance renewable energy projects including wind generation and solar energy storage.
They can also fund low carbon transport projects involving electric vehicles.
Sustainable bonds have a wider scope and a stronger emphasis on projects’ broader environmental impact.
This includes protection of biodiversity and reduction of resource use in the employment, education and healthcare sectors.
ACU makes a commitment to green buildings
The ACU is already reducing its environmental footprint “through energy efficiency, water conservation, recycling and re-use of its waste, and constructing sustainable buildings”.
Already one of Australia’s most efficient users of energy and water, the ACU has ‘green buildings’ firmly in its sights. These are based on clean energy, like solar panels, and sustainable development.
Mike Baird, NAB’s Chief Customer Officer, said the ACU has shown “commendable leadership” in putting sustainability at the heart of its financial decision making.
“This bond shows how positive outcomes for communities and our environment can be incorporated into business decision-making,” Mr Baird added.
“Growing numbers of investors want to act on social and environmental issues, and are looking for options that demonstrate impact.”
In addition, the ACU-funded projects are in line with key United Nations Sustainable Development Goals.
