‘Doing good’ is often aligned to the sustainability of the product and the associated supply chain. Covid-19 has accelerated this trend, heightening consumer demand for products that are healthy, sustainable and traceable.
New Zealand is well placed to meet those changing demands, and good management of our natural resources and improving on-farm environmental practices could provide a significant strategic advantage.
Green, or sustainable finance, is another important part of the sustainability equation, and is becoming a key tool for companies to meet their sustainability objectives.
2020 was a record year for the global sustainable finance market, and 2021 is set to be another as new ways of allocating capital are developed to help solve major challenges, like climate change and social inequity.
Here in New Zealand we saw NZ$2,725 million of sustainable (green, social and sustainability) bonds issued, and 2021 is looking even busier, with interest from a range of sectors assessing how they can align their sustainability strategies and financing plans.
At its most basic level, green finance is raising money to invest in projects that have a positive impact on the environment and aim to contribute to a more sustainable economy.
Green Bonds are the most common method of raising money in the green finance world. It follows a similar process to a traditional bond, for a similar price and risk profile. They allow the issuer to diversify its investor base, and help it to demonstrate its sustainability credentials to aligned investors.
Projects can include renewable energy, sustainable resource use, conservation, clean transportation and adaptation to climate change.
Our role is to partner with progressive organisations and match their green investment opportunities with the capital market.