THE WORLD BANK

2022

Sustainable
Fixed Income Strategy
Impact ReportTHE WORLD BANKSUSTAINABLE FIXED INCOME STRATEGY | 2022

Acknowledgements

About the Report

This report has been prepared and published thanks
to the efforts of many dedicated professionals.
It was an initiative led by the World Bank Treasury AssetManagement and Advisory Department. This report
would not have been possible without the guidance
and feedback from colleagues from several departments
within the World Bank Treasury and the Development
Finance Vice Presidency.

How a Bond Investment
Leads to Impact

Additional thanks to all of the bond issuers
who responded in a timely manner to data requests
and to those who also provided quotations.
This report was designed by Pi Comm.

This impact report highlights the environmental
and social impact generated by investments managed
by the World Bank for its trust fund clients.
The bonds held in this strategy are providing financing
to projects deemed eligible under their bond frameworks.
By purchasing these securities, the World Bank Treasury
does not claim to have direct exposure to the projects
financed by these issuers. Similarly, nor does it bear any
direct project risk.

Report Methodology

Copyright
World Bank Treasury Asset Management
and Advisory Department
For inquiries on the report:
TREAM_Strategy_and_Sustainability@
worldbankgroup.org© 2022 International Bank for
Reconstruction and Development / The
World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
This work is a product of the staff of The
World Bank with external contributions.
The findings, interpretations, andconclusions expressed in this work do
not necessarily reflect the views of
The World Bank, its Board of Executive
Directors, or the governments they
represent.
Cover photo credit :©Charlotte Kesl | World Bank

The World Bank does not guarantee
the accuracy of the data included inthis work. The boundaries, colors,
denominations, and other information
shown on any map in this work do not
imply any judgment on the part of The
World Bank concerning the legal statusof any territory or the endorsement or
acceptance of such boundaries.
Rights and Permissions
The material in this work is subject
to copyright. Because The WorldBank encourages dissemination of its
knowledge, this work may be reproduced,
in whole or in part, for noncommercial
purposes as long as full attribution tothis work is given.
Any queries on rights and licenses,
including subsidiary rights, should be
addressed to World Bank Publications,
The World Bank Group, 1818 H Street
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202-522-2625; e-mail: pubrights@
worldbank.org.

The primary inputs for this process are the annual
impact reports and dedicated newsletters of green,social, and sustainability bond issuers and information
published on official websites of these issuers. These
reports usually include aggregated impact information,
as well as the share of impact attributable at the bondlevel. Issuers often express impact according to annual
key performance indicators such as greenhouse gas
emissions avoided and renewable energy installed.
To the extent that issuers have provided meaningful
impact data, this information has been included in
the report. If issuers did not report in time for annual
impact data collection, or if other data gaps could not
be mitigated, this impact has not been captured in thisreport. Therefore, results communicated in this report
are limited to the data available and do not represent
the full extent of the portfolio's contribution to impactof the investments. World Bank Treasury has engaged
with all issuers held in this strategy, especially if there
have been questions regarding scope, methodology,
or timing of impact reporting.
World Bank Treasury has not audited or verified theimpact data that issuers have provided. An independent
third party sometimes, but not always, completes this at
the request of issuers. The accuracy, completeness, andrelevance of the information provided are not guaranteed.
This report has been prepared using sources considered
to be reliable and may be amended without prior notice.

In later sections of this report, impact metrics
attributed to the strategy are provided at both thebond level and the holdings level, with a cutoff dateof June 30, 2022.
The cutoff date marks the completion of the inaugural
year since inception of the strategy. As this first year
comprised a significant ramp-up period within the firstsix months, and also concluded mid-calendar year, theimpact metrics included in this report have not beentime-weighted. Rather, as most issuers' impact reports
are as of December 31, 2021, this report assumes aholding period of the entire calendar year of 2021. This
enables more timely reporting for this strategy, without
needing to wait for the publication of issuers' following
year's impact reporting to be able to account for theremaining six months of holding. Subsequent reportingfor this strategy will therefore be adjusted to use the endof the calendar year for the reporting period such that itbetter aligns with issuers' reporting timelines.
The team has taken published impact metrics fromissuers’ reporting (or through direct engagement)
and prorated the impact data down to the strategy’s
holdings level. For example, if the strategy holds 10%of a bond that provided services to 500 beneficiaries,
then the prorated impact for the strategy would be 50
beneficiaries. These figures only begin to tell the storyof the strategy’s impact, as issuers are not always able
to provide complete data on all of their funded projects,
issuers provide non-confirming impact data,or the first impact report for a recently issued bondis not yet available.
It is important to note that impact reporting fromissuers is heterogeneous and calculated through manydifferent types of methodologies, for example whenmeasuring greenhouse gas emissions reductions.
For this reason, impact metrics are disaggregated per
bond in the SDG Mapping section for full transparency.

THE WORLD BANK

Introduction to the Report

7

Background

10

Objective of the Sustainable Fixed Income Strategy

10

A Commitment to Impact Reporting

13

Portfolio Snapshot

15

Global Context of the Strategy

17

State and Trends of the Market

18

Focus on the Investable Universe

20

Portfolio Fundamentals

23

Portfolio Impacts

27

Topline Impact Numbers

28

Issuance Highlights

31

Selected Projects from Holdings

33

SDG Mapping

39

SDG Mapping of Impacts

40

Industry Coalitions

46©John Hogg | World Bank

Contents

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Introduction
to the Report©Boris Balabanov | World Bank

This inaugural report is a milestone in the journey of theWorld Bank as an asset manager to increase transparency
and focus on positive impact for our trust fund clients,
enabling an opportunity to align missions with investments.

7

8

“

Treasury is fully committed
to providing the highest
quality impact reporting
for asset owners with funds
invested in this sustainable
investment strategy.

I am pleased to share our first-ever impact
report for the Sustainable Fixed Income
Strategy. For over 40 years, the World Bank
Treasury has been entrusted with managing
the investments of development partner
contributions to trust funds and FIFs until
they are disbursed to final recipients ofdevelopment projects. World Bank Treasury's
prudent management of these investments
is anchored in its commitment to the WorldBank Group's twin goals and the missions of its
development partners. This strategy seeks tobuild on historical investment objectives suchas capital preservation and provision of liquidity
on demand. By actively pursuing investment
options, we intend to create a positive impact.
The strategy demonstrated that capital could
contribute to sustainable development even
before disbursement.

THE WORLD BANK9SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

World Bank Treasury Asset Management
Sustainable Fixed Income Strategy

Jorge Familiar,
World Bank Vice President
and Treasurer

The investment objectiveof the Sustainable Fixed
Income Strategy is to have apositive development impact
while maintaining capitalpreservation and liquidity.
The strategy is implemented
daily and defined by five pillars.

1

Investment Universe

In recent years, investors' interest andinternational capital markets have enabled thegreen, sustainable, and social bond market toflourish, providing Treasury with a significant
opportunity to better serve our partners.
Through this strategy, Treasury's participationin the market signals the importance anddemand for sustainable finance solutions andencourages capital markets to align to positive
impact. We are pleased to be able to offer ourpartners a strategy that is implemented witha high level of due diligence, engagement, andreporting.
We look forward to continued growth andcooperation with our development partners.

Given defined risk parameters and the investment
objective of the strategy, the available investment
universe consists of high-grade credit of supranational,
sovereign (and subnational), and agency (SSA) issuerswith ratings of AAA to AA-. Within this set of issuers,
the eligible universe of the strategy is based on positive
identification of select impact bonds. The investment teamcommunicates regularly with issuers, primary dealers, andother intermediaries to remain informed on new issuersin the market, primary issuance supply, secondary market
demand and liquidity, and other relevant information.

2

Verification
The verification process establishes whether a security
meets sustainability and impact requirements,
expectations, and preferences in a way that satisfies
the strategy’s objectives. The verification process
starts at the issuer level, with analysis of an issuer’s
business model, an issuers’ sustainability framework
and associated governance, policy alignment withinternational standards, and controversies. The teamalso reviews whether the issuer has meaningfulsustainability targets, commitments to comply withinternational treaties, and potential for engagement,
as well as whether the issuer provides sufficient datatransparency. After verification of these elements at
the issuer level, security documentation is thoroughly
analyzed to understand the impact of the security under
the applicable framework, including a review of theprospectus, relevant framework, use of proceeds, secondparty opinions, and reporting commitments. The teamconducts primary research and then supplements thisprocess with information from a range of data providers.

3

Portfolio Management
The strategy is managed within the same risk tolerance
established for participants in the trust fund pool.
It has a 3-year investment horizon, and the portfolio ismanaged relative to the risk anchored by a 0- to 5-year
U.S. dollar SSA benchmark. The portfolio comprises
labeled and non-labeled securities that meet strict
impact verification requirements and targets a certain
level of labeled holdings, which is generally higher
than the proportion of labeled securities within thebenchmark. Credit risk is managed within the same
prudent structure as defined for the rest of the trust
fund pool, and market risks (currency, duration,
key rate exposure) are managed using derivatives.

4

Engagement
Regular engagement with issuers, intermediaries, and key
market participants is a critical element of the strategy,
and the team is committed to holding periodic meetings
with issuers, at a minimum annually. These meetings focus
on sustainability, often as part of new deal roadshows
for pre-issuance of green, social, and sustainable (GSS)
bonds or as pre-issuance consultations, presentation of
new GSS frameworks, or sourcing feedback during thedrafting stage for a new GSS framework. These meetings
provide an opportunity for asset owners’ sustainability
preferences and expectations to be communicated andinvestor leverage to be used to influence issuers’ behavior.
Engagement also provides an opportunity to ensure fulltransparency and understanding of an issuer’s framework,
encourage ambitious targets, discuss upcoming issuances,and inquire about impact reporting.

5

Reporting
Annual impact reporting is a cornerstone of the strategy,
providing transparency of and attribution to the holdings.
The team seeks to communicate as much quantitativeand qualitative impact as possible at the most granularlevel possible. Issuers are improving post-issuancereporting, including through allocation reports, auditing,and broader impact reports, but the level of information
provided varies widely across issuers. The investment
team actively works with issuers to gather further impact
data, share project stories, seek clarity, and improve
the quality of reporting. The strategy’s annual impact
report provides highlights of specific issuers and holdings,
impact metrics that are aligned with the Sustainable
Development Goals, and specific project stories.

10

Background
The twin goals of ending extreme poverty and promoting
shared prosperity define the mission of the World Bank
Group (WBG). Since 2016, together with the wider
international development community, the WBG agreed tosupport a more ambitious and broader development agenda,
including the Sustainable Development Goals (SDGs) andhelping countries mitigate and adapt to climate risks.
The World Bank Treasury Asset Management and Advisory
Department (TREAA) helps support these goals by
formulating and implementing sound investment and risk
management policies and practices for funds held in trustand funds managed on behalf of official sector clients.
Capital preservation at high levels of confidence overthe investment horizon is TREAA’s overarching guiding
principle in pursuing reasonable risk-adjusted returns.

THE WORLD BANK

The investment objectiveof the Sustainable Fixed
Income Strategy is to have apositive development impact
while maintaining capitalpreservation and liquidity.

11

Trustee vs. AssetManager Roles
For more than 40 years, development partners
have entrusted the World Bank with the financial
management of their contributions to World Bank trust
funds and financial intermediary funds (FIFs). These
resources complement the WBG's mission to end extreme
poverty and promote shared prosperity sustainably.
Trust funds and FIFs allow for activities to be expanded,notably in fragile and crisis situations; provide immediate
assistance in response to natural disasters and otheremergencies; and pilot innovations that may be later
mainstreamed into the Bank’s operations.
As trustee, the World Bank receives and invests
development partner contributions to trust funds
and FIFs until funds are disbursed to final recipientsfor development projects. Such investment management
services are designed to preserve donor funds andenhance their value.

In 2019, the WBG's Finance and Risk Committee
endorsed adoption of environmental, social, andgovernance (ESG) integration as the default sustainable
and responsible investment approach for all portfolios
under Treasury’s management. This approachcomplements existing documentation governing
TREAA’s investment activities conducted by TREAA
by considering and adopting ESG factors in a pragmatic,
holistic manner across investment processes.

The Trust Funds and Partner Relations Department,in the World Bank Development Finance Vice Presidency,
serves as the liaison between development partners
and external and internal clients on strategy, policy,
and program management and provides financial
and risk management oversight for trust funds and
FIF assets that the World Bank Treasury manages.

Because ESG integration is an extension of traditional
financial analysis that explicitly considers ESG factors
in investments, it is consistent with Treasury’s mandate
to manage solely on the basis of preservation of capitaland risk-adjusted financial return. Accordingly, ESG
integration is used solely to assess financial risk
and return factors, and under no circumstances
does Treasury subordinate financial returns to
non-financial considerations.

Treasury has substantial expertise in asset and liability
management and a global reputation as a prudent,
innovative borrower, investor, and risk manager.
In managing funds for development partners, the WorldBank follows a well-defined investment process, applying
a conservative risk approach with ongoing oversight
through the World Bank’s financial governance structure.

© Dominic Sansoni | World Bank

Objective of the
Sustainable Fixed
Income Strategy
In response to World Bank trust fund client demand,
Treasury, as asset manager, launched the Sustainable
Fixed Income Strategy in July 2021, which uses the more
mission-driven sustainable and responsible investment
approach of thematic investment. While ESG integration
remains foundational to the strategy, a constrained
available investable universe, stemming from theadditional investment goal, differentiates the approach.

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Treasury manages the investment portfolios of trust
funds and FIFs in a fiduciary capacity. The appropriate
departments and financial committees, including theBoard’s Audit Committee, which reviews the investment
strategies, periodically review and approve theinvestment strategies for trust fund and FIF portfolios.
In addition, investment policy and asset allocations
are assessed in regular management discussions,and investment returns are reported at least monthly.
The Development Finance Vice Presidency approves
investment benchmarks and regularly reviews liquidity
requirements and allocation of investment balances
to specific investment tranches.

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

13

A Commitment
to Impact Reporting©Dana Smillie | World BankManaging the Sustainable Fixed Income Strategy requires
not only conducting up-front, pre-investment due diligenceon issuers, frameworks, and bonds, but also reporting on theimpact of holdings after an investment is made. This impact
report is an integral output of the strategy and will continue
to evolve based on feedback from various stakeholders andas data collection, management, and aggregation improveand standards for impact reporting evolve.

14

THE WORLD BANK15SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Portfolio Snapshot$440 m
21
32
22
94%
100%
17/17
72%

“

Akihiko Nishio,
World Bank Vice Presidentof Development
Finance (DFi)

It is a great pleasure to share the inaugural impact reportfor the Sustainable Fixed Income Strategy. The WorldBank as Trustee has committed to best serving trust
funds (TFs) and financial intermediary funds (FIFs) witha full array of standard and customized financial
services, which directly contribute to the fulfillmentof various development initiatives.
As an integral part of the World Bank’s financial
services, investment management services have kept
pace with the overall trend of financial markets byintegrating environmental, social and governance (ESG)
considerations into investment management process,starting with applying ESG Integration as the default
Sustainable Responsible Investing (SRI) approach from
July 2019. Furthermore, in response to growing demand
from some FIFs, we began implementing the Sustainable
Fixed Income Strategy in a phased manner from June
2021, with an aim to achieve positive developmental
impact on environment and/or society. Through tiered
offering of SRI investment approaches, the World Bank
as Trustee for TFs and FIFs intends to achieve theoverarching objective of capital preservation and liquidity
on demand and support our development partners tofulfill their SRI aspirations and development objectives.
Our world today is facing unprecedented overlapping
crises compounded with severe global challenges, causing
decades of developmental efforts to stall and evenbacktrack. As a steadfast partner and closely aligned
in strategic priorities, the World Bank is dedicated tosupporting TFs and FIFs entrusted to us through quality
financial services and innovative product offerings,
together to achieve sustainable development goals while
addressing global challenges head-on. We are grateful forthe longstanding support and trust from development
partners and look forward to our continued collaboration.

1

 eflects market values as of June 30,R2022. The portfolio went through the initialramp-up investment stage between Julyand December 2021. All impact numbers
are based on holdings as of June 30, 2022,
assuming a whole year of holding in 2021.

A green, social, or sustainability bondframework is a document created by theissuer that clearly articulates the proposed
use of proceeds from the bond. It also
includes information on eligible projects
and impact reporting commitments.

2 

3

4

T he result of the verification process
is the universe of impact bonds.
B onds not covered include non-labeledbonds, those that have not yet issued
impact reports, and those with
non-conforming impact reporting.

Assets undermanagement1

Issuers

Bonds

Impact bondframeworks2
Of the portfolio
invested in impact
bonds by numberof holdings3

Engagementwith issuers
Sustainable
Development
Goals supported
Of the bonds
covered in this
impact report4

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Global Context
of the Strategy©A. Melody Lee | World Bank

Launched in June 2021, a challenging global environment
defined the first year of the Sustainable Fixed Income
Strategy. The COVID-19 pandemic had been a disruption
for more than a year, followed by the war in Ukraine in early
2022, which exacerbated development challenges thatthe pandemic had already intensified.
This strategy provides an opportunity to ensure that
assets are supporting immediate, short-term needs, suchas assistance to refugees and provision of COVID-19
vaccinations to low-income countries, while still funding
the necessary medium to long-term goals required forsustainable development, such as the low-carbon transition
away from fossil fuels. The mandate to have a positive
developmental impact through the bonds held in thisfund translates more practically into funding for projects
around the world that help issuers and countries meet theirdevelopment objectives and climate goals.

17

18

State and Trendsof the Market
Overview of the labeled bond market
The universe of green, social, and sustainability (GSS)
bonds -- which earmark proceeds for projects andactivities that generate positive environmental and social
return -- has been growing rapidly in recent years, withtotal issuance across all sub-asset classes rising from
US$160 billion in 2017 to a peak of US$915 billion in 2021.
Before the market dislocation caused by the combinationof market uncertainty and the war in Ukraine, forecasts
for 2022 issuance were higher than US$1 trillion.
Despite the challenging backdrop, as of mid-2022,
issuance was still robust and on course to exceed 2020
issuance comfortably and challenge the 2021 total.

In terms of market sector, issuers in the non-financial
sector continue to be the primary vehicle for GSS issuance,accounting for 28 percent of total issuance, on average,
between 2017 and 2022. The sector issued US$44 billion
in 2017, rising to US$271 billion in 2021. The financial
sector has been consistently important, accounting
for some 23 percent of total GSS issuance,
on average, between 2017 and 2022.

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Figure 1

19

Green, Social, and Sustainability issuance by market sector, 2017 to 2022
Asset-Backed Securities & Municipal Bonds
Financial
Sovereign

Non-Financial
Subnational & Agency
Multilateral Development Banks

1,000
900

Figure 1
USD billions equivalent

800

Of the total GSS issuance, green bonds remain thedominant theme, although social and sustainability bondissuance as a percentage of total issuance has grownover time. In 2017, green bond issuance accounted for
88 percent (US$141 billion) of total issuance, declining
to 59 percent (US$538 billion) in 2021. This growth inissuance of non-green categories reflects a preference
for issuing social- and sustainability-labeled bonds
with broader adoption of holistic sustainability
frameworks that better align with the business models
and sustainability strategies of issuers. Sustainability
frameworks enable an issuer to simultaneously capture
relevant social and green impact from eligible projects,
which is not the case under a framework that only
captures one or the other.

Figure 2
Social bonds enable issuers to capture a broader setof themes that are highly relevant to their operations
than previously available under green bond frameworks;
similarly, investors can better align desired impact
outcomes with investments and respond to a morediverse set of urgent development challenges.
For example, several issuers came to market in 2020
and 2021 with social bonds related to the COVID-19
pandemic, with proceeds allocated to vaccine distributionin emerging markets, food assistance for families with
disrupted incomes, and upgraded health facilities withcold chain capacity for vaccine storage. More-qualitative
detail on pandemic bonds from the Inter-American
Development Bank and Asian Development Bank held
within the strategy is provided in the impact portionof the report below.
The proportional breakdown of ratings from AAA to
CCC of GSS issuances has stayed relatively stable from2017 to 2022. As issuance levels have risen overall, thisindicates significant growth in the availability of GSS
bonds within the AAA to A ratings range. As mentioned
above, with the notable increase in GSS issuance in the
non-financial sector, this translates to a broadening
potential investable universe for this strategy.

700
600
500
400
300
200
100
0 |
2017

|
2018

|
2019

|
2020

|
2021

|
2022YTD

Source: Dealogic, Bloomberg, dealer reports, and World Bank analysis

Figure 2

Green, Social, and Sustainability Issuance Bond Type, 2017 to 2022
Green

Social & Sustainable

1,000
900
800

USD billions equivalent

The diversity of issuers andbonds held in the strategy
reflect this intention ofcreating a portfolio thatseeks to address multiple
development areas andresponds to immediate crises
while keeping an eye on theneeds of future generations.
Although these challenges
are complex and require
global coordination of public,
private, and non-profit
actors, the capital markets
also have a critical role toplay in offering productsthat support development,
and in turn, investors cansignal their support throughthe allocation of assets
to strategies like this one.

THE WORLD BANK

700
600
500
400
300
200
100
0 |
2017

|
2018

|
2019

Source: Dealogic, Bloomberg, dealer reports, and World Bank analysis

|
2020

|
2021

|
2022YTD

20

THE WORLD BANK IMPACT REPORT

Focus on theInvestable Universe
Focusing on the sovereign, supranational, and agency(SSA) segment of the market, which comprised the initialinvestable universe for the Sustainable Fixed Income
Strategy, the strongest growth in relative issuancehas come from multilateral development banks, which
accounted for 7 percent (US$12 billion) of total issuancein 2017, rising to 13 percent (US$165 billion) in 2021
having risen as high as 28 percent in 2020, although
the strong multilateral response to the COVID-19
pandemic explained that. Sovereign issuance has beena notable feature of the growth of the GSS market as
more countries have adopted frameworks for issuanceof labeled bonds and commitments to address broad
challenges such as Net Zero have increased.
It is prudent to note that the World Bank, which issued thefirst green bond in 2008 and catalyzed the developmentof this market, comprises a significant portion of the
SSA universe, but is not eligible for investment due tointernal restrictions on investment activity in securities
issued by organizations in the World Bank Group.
Similar to the trend within the complete GSS universe,
sustainability-labeled bonds are expected to surpass green
bonds because most SSA issuers are leaning toward issuingsustainability-labeled bonds rather than green-labeledbonds. This movement is particularly notable in issuancesof multilateral development banks, whose projects
often span green and social impact. SSA issuers arealso responding to urgent development needs throughissuances. In June 2022, the Council of Europe Development
Bank (CEB) issued a social bond with the use of proceeds
dedicated to providing support to CEB member countries
hosting refugees from Ukraine. More information on thisholding of the strategy is provided later in this report.

As the market is evolving and maturing, issuers are
improving post-issuance reporting, including throughallocation reports, auditing, and more comprehensive
impact reports, although the level of information
provided varies widely across issuers, from aggregate
portfolio-level reporting to bond-level reporting toqualitative project examples. This range is similarlyreflected in this impact report, utilizing the most
granular level of data available and where reasonablecalculations can be made attributable to the holdings
level. Through engagement with issuers, TREAA is
working to increase the quality of their reporting.

©A'Melody Lee | World Bank

As a consequence of increasing adoption of environmental
and climate policies in Europe over the last decade, bonds
are much more available in euros than in U.S. dollars.
Availability is much greater for triple-A rated issuers,
representing the large issuance from multilateral institutions.
Most bonds have a long maturity—mainly 5 to 10 years,
although given defined risk parameters, the maturity
range of the strategy benchmark is 0 to 5 years.

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

23

Portfolio
Fundamentals©Boris Rumenov Balabanov | World Bank

The following sections of the report provide detail on issuers
and bonds held in the strategy, as well as the qualitative andquantitative impact as provided by issuers in their annual
reporting and through direct engagement.

24

THE WORLD BANKRegional
Domicileof Issuers

5%

14%

62%

100%
of Issuersin thisStrategy:

5%

Offer frameworks
aligned with ICMA
Principles

Verification Process

EuropeAfricaMiddle East
Asia
North America

Each investment passes through a rigorous due diligenceprocess prior to purchase, and the analysis post-issuanceincludes gathering allocation reports, impact metrics,
and other data.
Before an investment is made, the team goes throughthe process of verification, which serves to establish
whether the security meets sustainability and impact
requirements, expectations, or preferences in a way thatsatisfies the objectives of the strategy. The verification
process starts at the issuer level, with the analysis of anissuer’s business model, sustainability framework andassociated governance, policy alignment with international
standards, and controversies. The team also reviews
whether the issuer has meaningful sustainability targets,
commitments to comply with international treaties, thepotential for engagement, as well as whether the issuer
provides sufficient data transparency.

14%

Have a second party
opinion or external audit
of framework

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Following the positive verification of these elements at theissuer level, a thorough security documentation analysis
is conducted to understand the impact of the security
under the applicable framework, including the review ofthe prospectus, relevant framework, the use of proceeds,
second party opinion, and reporting commitments.

Issue impact
reporting forlabeled bonds

A few of the elements of the verification process
are provided below.

IssuerHighlight

As a leading impact
investor, FMO—theDutch entrepreneurial
development bank—supports sustainableprivate sector growthin developing countries
and emerging markets
by investing in
ambitious projects andentrepreneurs. FMO
believes that a strong
private sector leads toeconomic and social
development and has a
track record of morethan 50 years record in
empowering entrepreneurs
to make local economies
more inclusive, productive,
resilient, and sustainable.

FMO focuses on threesectors that havesubstantial development
impact: agribusiness,food, and water; energy;
and financial institutions.
With a total committed
portfolio of approximately
EUR 12 billion, spanning
85 countries, FMO
is one of the larger
bilateral private sector
development banks
globally.

Entrepreneurial
Development Bank
The Netherlands• Engagement with issuer on framework, reporting level, etc.

“ We are delighted with thesupport of the World Bankin FMO’s issuance of green
and sustainability bonds.
At FMO, we believe in a worldin which, by 2050, morethan 9 billion people live
well and within planetary
boundaries. With inequality
on the rise and the climate
crisis continuing to
unfold, it becomes evenmore important for us
to join forces with global
institutions like the World
Bank. The proceeds areused to provide long-termsustainable financing toour clients in emerging
markets, focused on green
investments and inclusive
businesses, from a solar
power plant in Burkina Faso
to a financial institution in
Uzbekistan, on-lending toyoung, female, and small
entrepreneurs.
Arthur Leijgraaff,
Senior Treasury Officer,
FMO“• Issuance framework alignment with International
Capital Markets Association (ICMA) principles• Regular impact reporting and verification• Second opinion of issuance framework• Internal sustainability or climate strategy• Prospectus and use of proceeds review• Signatory to UN Principles of Responsible Investment

Engagement with Issuers
Regular engagement with issuers, intermediaries, andkey market actors is a critical element of the strategy,
not only as a tool to communicate asset owner’s
sustainability preferences and expectations and to use
investor leverage to influence issuers’ behaviour, butalso to ensure full transparency and understanding of
an issuer’s framework, encourage ambitious targets,
discuss upcoming issuances, and inquire about impact
reporting. This happens throughout the year and througha variety of channels. The team is committing to regular
engagement with issuers, at least on an annual basis, tostay up to date with any new developments from relevant
issuers and the market in general.
Many of the qualitative impact stories below were provided
through tailored engagement with issuers, who are often keen
to help investors communicate the impact of their bonds.

25

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

©Simone D. McCourtie | World Bank

Portfolio
Impact27

28

THE WORLD BANKTopline Impact
Numbers
The strategy uses issuer
information for each bondto calculate the impact
at the issuance level,
as well as at the holdings
level, using a prorating
approach. Both levelsof impact are provided laterin the report when alignedwith the SDGs. The topline
impact numbers to theright show prorated impact
attributed to the holdingsof the strategy as of June30, 2022.1 This is a very
simplified representationof the impact that aligns
to the methodology used byother investors. It provides
an indication of the scope of
impact, yet underestimates
the actual support since
only part of the results isreported. The fuller breadthof impact is provided in the
SDG Mapping section below.
1

A ssuming one year of holding in 2021.

Note on units:
MWh = megawatt-hourtCO 2e = tonnes of carbon dioxide equivalent;issuers use different methodologies
to calculate emissions reductions
m 2 = square meters

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

377,9362,483
379
122,796
433
3,549
1,724
4,089

29

MWh per year in
new renewableenergy generation
Beneficiaries
of anti-poverty
programs
Farmers withaccess to improved
agricultural services
or investments
tCO2e avoided
per year fromrenewable energy
generation
Students
benefited fromeducation
programs

Electric vehicles
manufactured
New usersof publictransportation
m2 of inclusive
and sustainable
areas and healthy
ecosystems
developed

30

THE WORLD BANKSUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

31

Issuance
Highlights
Type of
Bonds inthe Portfolio

6%

Non-labeledSocialSustainability
Green

19%

53%

Sustainable Development Goals (SDGs)
Represented in Issuers' Impact Reports
19

15

Council of Europe
Development Bank (CEB)
Social Bond Issuance
June 2022

Arturo Seco Presencio,
Deputy Chief Financial
Officer, Council of Europe
Development Bank

This bond was developed
to promote BNG Bank’s
investment in the bestin-class sustainablemunicipalities in the
Netherlands in 2020.
The bond’s first(most recent) impact
report shows that themunicipalities elected
best-in-class overall still
outperform the totalgroup of municipalities,
although the differences

have become smaller (asalso is the case for carbon
dioxide emissions). BNG
Bank welcomes the broaddevelopment of Dutch
municipalities on theirsustainable performance,
which BNG Bank continues
to support actively,in line with its own Road
to Impact strategy.

is in our DNA; we are(since 1914) the bankof and for the public
sector, and we are driven
by social impact.
We actively engage withour clients (of which
the Dutch municipalities—
after the Dutch housing
associations—are thesecond largest group)
to discuss their current
and future needs. We act
as a natural partner,

based on expertise andhonesty—a partner that
actively contributes to theresolution of sustainable
and social challenges ourclients have to cope with.”

Export Credit Corporation(SEK) is a state-owned
company that finances
Swedish exporters,
their subsidiaries, andtheir foreign customers.
SEK borrows funds
using several different
instruments in various
geographic markets andtargets both institutional

and private investors.
With SEK’s various
borrowing programs,
we can effectively reachthose markets that, at
any given time, offer thebest possibilities for us toborrow funds. By issuinggreen bonds in international
capital markets, SEK
finances green loans using

9

8

8

SDG 1

2

8

8

6

5

4

2
3

BNG Bank
Sustainability Bond
Issuance November 2020

9

6

5
3

As BNG Bank has said,“The Dutch public sector

”

12

12
Count

Notes:
1.	SDG count fromallocation and impact
reports; most issuerscite multiple SDGs
2. Does not include
non-labeled bonds
3.	Coverage amountis 88%

approved by the CEB.
With EUR 1.3 billion
in loans approved asof September 2, 2022,
2.1 million refugees are
expected to receive aid
thanks to CEB financing.

Three projects, for the
Czech Republic, Italy
and Poland, in the total
amount of EUR 980
million were approved onJune 3. Three additional

Note:
Calculated by numberof bonds in thestrategyin our USD 1 billion threeyear Social Inclusion Bondin June, which enabled us
to expand assistance to ourmember states that are
hosting millions of displaced
persons from Ukraine.
Its proceeds will be used
to address the most urgent
needs of refugees andtheir host communities.

loans were approved on
July 8 in favor of projects
in Germany and Lithuania
totaling EUR 325 million.
The largest number ofbeneficiaries are thoseseeking refuge in Poland,
which has received by
far the largest numberof refugees since theoutbreak of the war.
The Ukraine-crisis related
loan to Poland worth EUR
450 million is the highest
ever one-off loan amountIn addition to immediate
assistance in the form ofgrant disbursements fromits Migrant and Refugee
Fund, the CEB pledged loan
finance support to the CEB
member countries hosting
refugees from Ukraine.

22%

are very pleased with the“We
World Bank’s participation

4

5

6

7

8

9

10

11

12

13

14

15

16

17

money from investors whowant to make a difference
for society and theenvironment.

SEK it is a strategic“For
move to diversify borrowing
and broaden the investor
base. It enables us to raise
capital from investors toprojects with green andsocial benefits.

”

Svensk Exportkredit
Green Bond Issuance
July 2019

Magnus Montan,
Chief Executive Officer,
SEK

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

33

Selected Projects
from Holdings
Project stories have been provided by issuers throughimpact reporting or direct engagement. Expectedor achieved impact noted below has not been prorated
per holdings level to provide a broader overview ofintended impact.

©Jutta Benzenberg | World Bank

The bonds held in this strategy are providing financing to issuers,
who are then financing an equivalent amount for projects
deemed eligible under their bond frameworks. By purchasingthese securities, the World Bank Treasury does not claim tohave direct exposure to the projects financed by these issuers.
Similarly, nor does it bear any direct project risk.

34

THE WORLD BANK

Selected Projects
from Holdings

SUSTAINABLE FIXED INCOME STRATEGY | 2022

35

NorwayKBN

Netherlands
NWB Bank

Hungary

Mongolia

KEXIM

ADB

CanadaCDPQ

SenegalIsDB

Belize

Laos

IADB

FMO

BrazilIDB Invest

BhutanADB

Namibia
AfDB

ZambiaSEK

36

THE WORLD BANK37

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Selected Projects
from Holdings
Belize IADB

Canada CDPQ

Mongolia ADB

Norway KBN

This project seeks to help reduce the morbidity andmortality caused by COVID-19 and to mitigate otherindirect impacts of the pandemic on health.

This project will include the construction of one of thelargest automated transit networks in the world in Québec.

This project will deliver sustainable and comprehensive
solutions to transform the substandard, climate-vulnerable,
and heavily polluting ger areas of Ulaanbaatar City into
affordable, low-carbon, climate-resilient, and livableeco-districts and leverage private sector investments.

An investment from KBN enabled Øvre Romerike
Avfallsselskap (ØRAS) to replace ordinary wood chipfiring with a new process that utilizes waste to create a
new product and produce energy while cutting emissions
in its new bio-firing plant.

Expected outcomes include:•D elivery of 10,000 affordable green housing units,
including 1,500 social housing units• Construction of 15 ha of public space and green areas,and 36,000 m2 of public facilities• Installation of 72,000 m2 of photovoltaic solar panels• Creation of 100,000 person-months of employment
opportunities during project construction, of which 30%
are filled by women

As untreated wood is charred to biochar, CO2 is formed,
but instead of releasing the gases into the atmosphere,
most of the carbon is captured in the biochar that is
produced. The biochar can be used in compost, water
purification, soil improvement, and binding carbon andnutrients to the soil.

Namibia AfDB

Senegal IsDBIn 2020, Namibia's economy contracted by 7.3% amidst
the COVID-19 crisis. The adverse imapct of the pandemic
has affected financial services, trade, investment, andtourism, all of which were already under pressure before
the pandemic. The Governance and Economic Recovery
Support Program is designed to support the Government's
reforms geared towards strengthening resilience andenhancing inclusive post-pandemic economic recovery.
The program will help with particular emphasis onenhancing fiscal performance, revival of critical sectorsof the economy, development of Micro, Small and Medium
Enterprises (MSMEs), and social protection.

This project focused on expanding the screening andlaboratory diagnosis of COVID-19 in all regions in Senegal
through acquisition of mobile laboratories and deploying
rapid diagnostic tests for remoted localities difficult toaccess. It also enhanced the manufacturing capacityof the Institut Pasteur of Dakar (IPD) for laboratory
diagnostics. Finally, it helped in promoting capacity
development, peer learning and knowledge sharing
between IPD and the laboratory network in sub-Saharanmember countries on preparing and responding to the
COVID 19 pandemic.

Expected outcomes include:• 100% of health personnel vaccinated• 44 health facilities with functional cold chain for vaccines• 238,800 doses of COVID-19 vaccines delivered

Bhutan ADBThis project mitigated the adverse impacts of COVID-19
on the economy and well-being of the people throughcontainment measures for businesses and the population.
Outcomes included:• About 95,647 individuals received support from Bhutan’s
National Resilience Fund, including social relief grants
for 48,902 adults and 15,989 children• Skilling and employment support for over 14,000 individuals• As of February 2022, 86.26% of all cottage and small
industries in operation in 2019 were still in businessBrazil IDB Invest
BRK Ambiental is the largest private sanitation utilityin Brazil, with a presence in 185 municipalities, serving
15 million people. IDB Invest financing is supporting thecompany's sanitation project in the city of Recife, anarea in Northeastern Brazil with significant economic
vulnerability and infrastructure gaps. About 50% of the
population living in the project area earns less than halfof the minimum wage per month, and about 70% of the
population lacks access to sanitary sewave networks.
IDB Invest financing will help the company expand,rehabilitate, and improve the wastewater infrastructurein 15 municipalities, aiming to cover 90% of the populationin these areas with access to sanitation services by 2037.
In addition, the project is expected to generate more than
1,000 jobs during the construction of infrastructure in theregion, 20% of which will be occupied by women.
Outcomes achieved as of 2021:• Nearly 100,000 additional households served(from 215,000 in 2017 to 312,800 in 2021)• 161 million cubic meters of wastewater treated since 2017
• Around 2,400 direct jobs supported per year throughthe company's operations

Expected outcomes include:• 680,000 tons of GHG emissions avoided over 25 years• Passenger capacity of 42,120 users during rush hour
• Creation of 34,000 direct and indirect jobs during
the construction phase• 250,000 trees planted during construction to offset
the GHG emissions

Hungary KEXIMTIn June 2021, KEXIM provided a total of USD 500 million
loan to SK Battery Hungary Kft, SK Innovation’s EV
battery manufacturing subsidiary in Hungary.
Expected outcomes include:• Expanded battery production capacity from 7.5 GWh
to 17.3 GWh

Laos FMO
FMO has provided a USD 12 mln senior debt loan,
together with Building Prospects Fund, to Mekong
Timber Plantations Limited (MTP), which is one of Laos’largest forestry plantation companies with more than
24,000 ha of land. The total plantation area consistsof 9,519 ha of high-quality eucalyptus and acacia, all
FSC certified. MTP is an investee company of the New
Forests Tropical Asia Forest Fund (TAFF), a fund focusedon certified plantation forestry with an emphasis ontechnological, silvicultural, and ESG improvements.
With FMO’s financing, MTP aims to further expand its
plantation area and to establish an integrated saw log,
veneer and chipping mill.

Expected outcomes include:• Annual energy production of 1,262,857 kWh/year

Expected outcomes include:• 40,000 additional beneficiaries in social protections• 90 new SME registrations• USD 12 million increase in private investments in agriculture• USD 5.4 million increase in private investments in industry• Fiscal deficit/GDP ratio improved from 9.9% to 7.3%

Outcomes included:•B uilt capacity of 50 lab technicians, who were trainedin preparing and responding to COVID-19 pandemic• 200,000 laboratory diagnosis tests procured and used•5 mobile laboratories procured, well equipped
and functional• 4 million rapid tests developed by IPD for early testing

Netherlands NWB Bank

Zambia SEK

As part of its contribution to the energy transition,
De Dommel Water Authority encourages local energy
cooperatives to generate renewable energy at its sites.
A wind farm was constructed on and near the sewage
treatment plant.

This project includes a regional power grid in Zambia’s
North Western province to secure access to electricity
in rural areas, as well as to connect to the national
network to reduce diesel dependence in exchange
for hydropower.

Outcomes include:• Four wind turbines with a capacity of 3.6 MW per turbine•T he electricity production covers over 50% of thissewage treatment plant’s total energy consumption.
• The CO2 reduction per year will amount to more than 4,000
tonnes, the equivalent of the emissions of 585 households.

Expected outcomes include:•R eduction of 13t tons CO2e per year
(proportion financed by SEK)
• Access to electricity for rural population and reduced
load shedding• Enhanced education and health facilities

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

39

SDG
Mapping©Curt Carnemark | World Bank

To calculate this impact, we collected data from issuers’
impact reports, engaged with issuers, and conservatively
estimated the impact from the funded activities, adjusted
for the holdings as of June 30, 2022, assuming one year ofholding in 2021. These figures only begin to tell the storyof the strategy’s impact, as issuers are not always able toprovide complete data on all their funded assets, or the first
impact report for a recently issued bond is not yet available.
The impact data below has been provided at both the bondlevel, listed first, as well as at the holdings level of thestrategy, listed second in bold. This enables a holistic viewof impact intended by the issuer as well as the prorated
attribution to the holdings in this strategy.
Issuers have mapped SDGs through their impact reports,
or the strategy team has done so.

40

SDG
Mappingof Impact

THE WORLD BANKNO POVERTYQUALITY EDUCATIONIADB Sustainability Bond
In 2021, through 15 contributing projects,
supported 1,489,785 beneficiaries oftargeted anti-poverty programs
Translates to 2,483 beneficiaries
at holdings level

IADB Sustainability BondZERO HUNGERADB Green Bond
13,643 farmer households benefiting from
improved agriculture
Translates to 349 farmer households
at holdings level
5,157 hectares with improved irrigation,soil nutrient, fertilizer and pesticide use
Translates to 132 hectares at holdings level
AfDB Social Bond752,386 food kits distributed
Translates to 2,136 distributedat holdings level
IADB Sustainability BondIn 2021, through 8 contributing projects,
supported 17,999 farmers with improved
access to agricultural services andinvestments
Translates to 30 farmers at holdings level

GOOD HEALTH
AND WELL-BEING©Simone D. McCourtie | World BankAfDB Social Bond
3,870,430 people tested for COVID-19
Translates to 10,987 people at holdings level
IADB Social Bond
In 2021, through 16 contributing projects,
supported 1,608,875 beneficiaries
receiving health services, with the majority
in Brazil, Colombia, and Honduras
Translates to 12,067 beneficiaries
at holdings level

41

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

In 2021, through 14 contributing projects,
259,647 students benefited fromeducation projects
Translates to 433 students at holdings level

GENDER EQUALITY
IADB Sustainability Bond
In 2021, through 5 contributing projects,
2,326 women were beneficiaries of
economic empowerment initiatives
Translates to 4 women at holdings level
IDB Invest Sustainability Bond
From 2019-2021, 7,826 women were
beneficiaries of economic empowerment
initiatives
Translates to 72 women at holdings level

CLEAN WATER
AND SANITATIONAfDB Social Bond
1,975,251 people with better accessto water and sanitation services
Translates to 5,607 people at holdings level
IADB Sustainability Bond
In 2021, through 14 contributing projects,
33,594 households gained improved accessto water and sanitation
Translates to 56 households at holdings level
IDB Invest Sustainability Bond
From 2019-2021, 306,149 households withimproved access to water or sanitation
Translates to 2,817 households
at holdings level
From 2019-2021, 75 million cubic metersof wastewater treatedTranslates to 690,000 cubic meters
at holdings level
Kommunalbanken Green Bond
Constructed new facilities or installed
efficiency upgrades at water andwastewater plants in Norway through 15
new projects in 2021, expected to:• Separate wastewater and surface runoff• Improve energy efficiency• Reduce leakage• Reduce chemical pollution
Kommuninvest Green Bond
27,759 more people supplied by water
and wastewater facilities in Sweden
Translates to 192 people at holdings level
26 tonnes of nitrogen reduced from water
and wastewater facilities in Sweden
Reduction of 0.2 tonnes at holdings level

AFFORDABLE
AND CLEAN ENERGYADB Green Bond
Renewable energy capacity constructedor rehabilitated of 403 MW
Translates to 10 MW at holdings level
Avoiding 2,079,134 tCO2e annually
Translates to 53,201 tCO2e at holdings level
Energy savings of 380,724 MWh annually
Translates to 9,742 MWh at holdings level
FMO Green Bond
In 2021, 81,324 tCO2e actual avoided GHG
emissions through new renewable energy
capacity
Translates to 813 tCO2e at holdings level
IADB Sustainability Bond
In 2021, through 2 contributing projects,
37,573 households gained improved accessto energy services
Translates to 63 households
at holdings level
IDB Invest Sustainability Bond
From 2019-2021, 714 MW of installed power
generation from renewable energy sources
Translates to 6.6 MW at holdings level
Kommunalbanken Green Bonds
Constructed or installed renewable energy
sources in Norway, expected to:
Produce 22,521,449 kWh renewableenergy annually
Translates to 606,099 kWh at holdings level

42

SDG
Mappingof Impact

THE WORLD BANKAFFORDABLE
AND CLEAN ENERGYProvide installed effect of 1,277 kW
Translates to 35 kW at holdings level
Reduce/avoid 7,094 tCO2e annually
Translates to 192 tCO2e at holdings level
Kommuninvest Green Bond
377,405 MWh annual renewable energy
generation in Sweden, including rooftop
solar on buildings
Translates to 2,616 MWh at holdings level
Korea Development Bank Green Bond
557 GWh renewable power generation
expanded annually, avoiding 337,744 tCO2
annually
Translates to 20 GWh and 12,062 tCO2
at holdings level

Installed wind generation of 551,155 MWhannually provides reduced GHG emissionsof 4,756 tCO2/year
Translates to 55,115 MWh and 476 tCO2
at holdings level
The Export-Import Bank of Korea Green Bond
Installed wind capacity of 27 MW provides
avoided GHG emissions of 12,321 tCO2/year
Translates to 0.4 MW and 181 tCO2
at holdings level
Installed solar capacity of 940 MW provides
avoided GHG emissions of 294,251 tCO2/year
Translates to 14 MW and 4,327 tCO2
at holdings level

DECENT WORK AND
ECONOMIC GROWTH

Annual renewable energy generationof 530,914 MWh annually
Translates to 4,247 MWh at holdings level

AfDB Social Bond392,573 jobs created or protectedTranslates to 1,114 at holdings level roviding annual wind energy generationPof 328 GWh
Translates to 16 GWh at holdings level voiding 247,505 tCO2e annuallyA
Translates to 12,375 tCO2e at holdings level
In 2021, new solar energy projects acrossthe EU:
Increased installed capacity by 86 MW
Translates to 4 MW at holdings level
Providing annual solar energy generationof 75 GW
Translates to 4 GWh at holdings level©K M Asad | World Bank

Swedish Export Credit Corp (SEK) Green Bond
Installed hydropower generation of
2,752,886 MWh annually provides reduced
GHG emissions of 365,914 tCO2/year
Translates to 275,289 MWh and 36,591
tCO2 at holdings level

Kreditanstalt Für Wiederaufbau (KfW)
Green Bond
318 MWel additional capacity of renewableenergyTranslates to 3 MWel at holdings level

Rentenbank Green Bond
In 2021, new wind energy projects acrossthe EU:
Increased installed capacity by 180 MW
Translates to 9 MW at holdings level

Avoiding 51,542 tCO2e annually
Translates to 2,577 tCO2e at holdings level

43

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

309,958 micro, small, medium enterprises
or cooperatives supported with accessto financing
Translates to 880 at holdings level

INDUSTRY,INNOVATION AND
INFRASTRUCTURE
IADB Sustainability Bond
In 2021, through 35 contributing projects,
298 km of roads built or upgraded
Translates to 0.5 km at holdings level

SUSTAINABLE CITIESAND COMMUNITIESADB Green Bond
Increase of 58,444 passengers using public
transportation
Translates to 1,495 passengers
at holdings level 1 km of new public transit and/or
3
bicycle routes
Translates to 1 km at holdings level
CDPQ Green Bond
New automated clean transit network
in Québec, expected to:
Avoid 120,823 tons of GHG emissions
over 25 years
Translates to 3,697 tons at holdings level
Benefit 7,484 users during rush hour
Translates to 229 users at holdings level

FMO Green Bond
1,056 direct jobs and 15,602 indirect jobs
supported
Translates to 11 direct and 156 indirect
jobs at holdings level

Create 178 permanent jobs
Translates to 5 jobs at holdings level

IADB Sustainability Bond
In 2021, through 18 contributing projects,
15,676 micro, small, medium enterprises
were financed
Translates to 26 enterprises at holdings level

Kommunalbanken Green Bonds

In 2021, through 7 contributing projects,
361 enterprises were provided withtechnical assistanceTranslates to 1 enterprise at holdings level
IDB Invest Sustainability Bond
From 2019-2021, 265,528 MSMEs financed
Translates to 2,443 at holdings level

Plant 44,420 trees during construction tooffset GHG emissions
Translates to 1,359 trees at holdings level

Constructed or rehabilitated climate-smart
and/or energy efficient buildings in Norway,
expected to:
Produce 2,823,664 kWh of renewableenergy annually
Translates to 76,367 kWh at holdings level
Provide energy savings of 12,659,234 kWhannually
Translates to 342,372 kWh at holdings level
Reduce/avoid 4,877 tCO2e annually
Translates to 132 tCO2e at holdings level

44

SDG
Mappingof Impact

THE WORLD BANKSUSTAINABLE CITIESAND COMMUNITIES
Kommunalbanken Green Bonds
Provided transport solutions with minimalor zero emissions in Norway, expected to:Provide 43 electric cars
Translates to 1 electric car at holdings level
Reduce/avoid 244 tCO2e annually
Translates to 7 tCO2e at holdings level
Kommuninvest Green Bond1 3.1 GWh energy savings annuallyin building and energy efficiency projects
in Sweden
Translates to 91 MWh at holdings level
9.0 GWh energy savings in green buildings
in Sweden
Translates to 62 MWh at holdings level

Kommunalbanken Green Bonds
Installed measures that help minimize
waste, increase reuse, recycling andimprove energy recovery in Norway,
expected to:
Produce 576,725 kWh renewable energy
annually
Translates to 15,598 kWh at holdings level

In 2020, 21 Dutch water authorities
increased biodiversity through improved
water quality by removing the following
substances from wastewater:• 87.3% of phosphates• 84.7% of nitrates• 93% of oxygen-binding substance

Reduce/avoid 54 tCO2e annually
Translates to 1 tCO2e at holdings level

Kommunalbanken Green Bonds

CLIMATE ACTION
Invest in climate change adaptation in
Norway through 5 new projects in 2021,
including:• New flood control channels andnew culverts• Flood protection assessments• New 2,000 m3 retention basin
for surface runoff management

Produced 166,370 secondary cell electricvehicle batteries, providing 649,465 tCO2/
year avoided
Translates to 2,447 batteries and 9,551
tCO2 at holdings level

Nederlandse Waterschapsbank (NWB)
Green Bonds

LIFE ON LAND

Kommunalbanken Green Bonds

The Export-Import Bank of Korea
Green Bond

LIFE BELOW WATER

Increase capacity of 49,544 tonnes
Translates to 1,340 tonnes at holdings level

99,334 new electric vehicles manufactured
annually, avoiding 100,328 tCO2 annually
Translates to 3,548 vehicles and 3,583
tCO2 at holdings level

Construction of 507 (10 at holdings level)
new affordable and sustainable dwellingsin the Netherlands in 2020, of which:• 32% is accessible to persons withdisabilities• CO2 emissions relating to heating andelectricity decreased by 5% (in kg/m2/yr)• 80% of all affordable dwellings containhigh efficiency heating systems and 13%
of dwellings have solar panels installed• The average net housing cost burdenin this program is 32% compared to 38%
in the commercial rental sector©Simone D.McCourtie | World BankRESPONSIBLE
CONSUMPTION
AND PRODUCTION

Korea Development Bank Green Bond

Nederlandse Waterschapsbank (NWB)
Sustainability Bond45

SUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Kreditanstalt Für Wiederaufbau (KfW)
Green Bond
Avoided annual emissions of 281,353
tCO2e from renewable energy and energy
efficiency projects
Translates to 2,251 at holdings level
Nederlandse Waterschapsbank (NWB)
Green Bonds
In 2020, 21 Dutch water authorities
updated 104 km of non-primary flood
defenses that comply with safety
standards and operate entirely on
renewable energy (and sell some backto the grid)Translates to 1 km at holdings level

Develop safe, inclusive and sustainable
areas and healthy ecosystems in Norway
covering 151,186 m2
Translates to 4,089 m2 at holdings level46

THE WORLD BANKSUSTAINABLE FIXED INCOME STRATEGY IMPACT REPORT | 2022

Industry
Coalitions
In addition to continuous
engagement with issuers,
TREAA is involved in several
industry coalitions andnetworks with the aim ofcontributing positively tothe development of ESG
products, standards, andcollaboration. In addition
to the two groups noted
to the right, TREAA has
increased its ESG presencein the dealer community, andstructuring desks request
its feedback and input on
future security structures,products, and industry
development preferences.

At the Paris “One Planet
Summit” in December
2017, eight central
banks and supervisors
established the Networkof Central Banks andSupervisors for Greening
the Financial System(NGFS). The Network’s
purpose is to help
strengthening the global
response required to meetthe goals of the Paris
agreement and to enhance
the role of the financial

system to manage risks
and to mobilize capitalfor green and low-carbon
investments in the broader
context of environmentally
sustainable development.

The Working Groupon Common Treasury
Services targets anopportunity to realize
savings and allow for
economies of scale
across the UN systemthrough a combinationof harmonized treasury
services. This initiative
intends to institutionalize
best treasury
management practices
in the UN system and to
explore the establishmentof common treasury

management for UN
system organizations.
TRE is part of the UN
Treasury Communityof Practice and membersof the ESG Working Group
subcommittee to advanceinvestment practices
within the UN systemand collaboration.

The World Bank is an
official observer and TRE
participates in network
events and activities.

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for discussion purposes only toa limited number of persons who may
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information nor any opinion expressedin this document constitutes an offer,
an invitation to offer, solicitation ora recommendation to enter into anytransaction or to participate in any
investment product or strategy
managed by the World Bank Treasury.
The information in this document

does not purport to be all inclusive or
to contain all of the information thata recipient may deem material to its
decision to invest. Any summaries of
documents should not be relied on andreferences should be made to the fulldocument. The information containedin this document is subject to change.
Nothing in this document constitutes
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financial or other advice. Recipientsshould form their own assessment
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2022
THE WORLD BANK

Sustainable
Fixed Income Strategy
Impact Report