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Part of this revolution is the meteoritic growth of greenbonds, which were started in 2007 by the World Bank and the European Investment Bank. If growth was slow from the first greenbond issuance to 2012, things have accelerated since. Greenbonds are indeed often oversubscribed due to their success.
Decreased operational costs Sustainable investments often lead to more efficient operations, particularly in terms of energy use, water consumption, and waste management. Another way companies reduce operational costs is through investing in a sustainable supply chain.
The NN IP framework consists of four pillars – business model, governance, environmental and social – each focused on themes that “help assess a company’s real-world impact”. The themes encompass a range of material issues including sourcing of materials; water management, biodiversity and land use; and pollution and waste.
Going forward, it will include lifecycle assessment of materials employed in the construction phase as part of the development design as a way of reducing embodied carbon, waste and pollution. Global investment manager Nuveen has partnered with UK-registered charity Shell Foundation to drive more capital to emerging market climate solutions.
This partnership is enabling CEMEX to turn its own waste into lighter-weight building materials with less carbon output. One of its recent partnerships is with the social enterprise Arqlite , which has developed proprietary technology capable of upcycling previously unrecyclable plastics into construction inputs.
“Some of that money needs to be channelled towards scaling up the emerging infrastructure technologies, companies and assets across critical sectors, such as digital infrastructure like small cells and green data centres, battery storage, electric vehicle charging and waste management.
The fund will target investments that enable disruptive businesses to reduce waste and use resources in a circular manner, improving energy efficiency and reducing emissions. In addition, it will target investments that expand access to and reduce the cost of basic products and services for under-served consumers.
In the global market there are dedicated ESG funds and green instruments (ranging from greenbonds to green insurance ) to facilitate projects – not only in the domain of climate finance, but also focused on the environmental objectives necessary to support sustainability. In the third quarter of 2020 a record $76.5
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