Market Blog #29 - 12/7/19: USD117.6b GBs in H1: June – USD20bn: Ferrovie dello Stato
1st Italian Certified Climate Bond: Freddie Mac joins US green MBS market; Green bonddeals across the globe, green bond gossip and more!

Highlights:●

USD116bn issued in H1 2019 – On track for USD200bn+ year?

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First Italian Certified Climate Bond from state rail operator Ferrovie dello Stato●

US green MBS market grows with Freddie Mac’s debut foray●

Germany to issue Sovereign Green Bund in 2020

Don’t miss!
Germany: Green Finance State of the Market - 2019 update provides a detailed overview of recent
developments in the German green bond market. It analyses the developments in the private andpublic sector for industries with green growth prospects, including energy, low carbon buildings,
transport and automotive. It identifies climate-aligned issuers that are already financing green assets.

Green bond deals across the globe – 2019

Go here to see the full list of new and repeat issuers in July.

June at a glance
Total green bond volume for this year as at July 12 stood at USD123.2bn, putting the market at just under half of CBI’starget annual issuance of USD250bn.
June issuance reached USD20bn, exceeding the 2018 figure of USD18.6bn as foreshadowed last market blog. Our
preliminary figure for total volume for the first half of 2019 is USD117.6bn, 48% higher than in H1 2018.

83% of June’s issuance was reviewed by a third party, out of which 86% included a Second Party Opinion. CICERO was themost popular SPO provider with 41% of reviewed volume. May 2019 remains the record month for deals with Certification
under the Climate Bonds Standard with over USD11bn of Certified Climate Bonds (CCB). June CCB volume was USD2.4bn.
The largest issuer was the Chilean debut sovereign green bond, followed by taps from programmatic issuers SNCF
(France), DNB Boligkreditt (Norway) and New York Housing Finance Agency (USA), as well as debut issuer PKO Bank
(Poland). Vigeo Eiris verified the majority (82%) of Certified, including the Chilean sovereign GB.

Note: USD1.5bn Certified deals from June 2019 also benefit from a Second Party Opinion.

Over a third (34%) of issuance came from non-financial corporates, whose share grew by 21% year-on-year. The top deal
in this category – and of the whole month – remained French energy giant Engie’s EUR1.5bn (USD1.7bn) their sixth green
bond. On the other hand, the share of financial corporates dropped from 47% to 20%, while issuance from governmentbacked entities grew by 2% to 16% of monthly volume and ABS decreased by 4% to 14%. In the latter category, Fannie
Mae’s USD2.3bn June issuance was complemented by Freddie Mac, which entered the market with a USD435m debut (seebelow for details). Sovereign issuance ended up with a 7% contribution.

The US kept the top spot with 23% of monthly volume, a decrease of 2% versus June 2018 (25%). France ranked second at
13% of the market (in June 2018 China claimed that spot). Sweden (10%), the Netherlands (9%) and Chile (7%) make up
the rest of the month’s top 5.
Similar to June 2018, developed markets dominated, contributing 80% of total volume, with the top 3 – USA, France andSweden – accounting for more than half (58%) of June DM issuance. On the emerging markets side, Chile and China madeup 87% of the month’s EM issuance. Smaller contributions came from Indian Adani Green Energy (USD500m), the Federal
Government of Nigeria (NGN15bn/USD42m), Poland’s PKO Bank (PLN250m/USD66m) and Iceland’s Reykjavik Energy.

> The full list of new and repeat issuers here.
> Click on the issuer name to access the new issue deal sheet in the online bond library.

Certified Climate Bonds
Ferrovie dello Stato (EUR700m/USD788m) became the first Italian issuer of a Certified Climate Bond with its 7-year green
bond. Sustainalytics provided the Pre-Issuance Verification. Ferrovie will use all the proceeds to refinance a loan provided
to Trenitalia to procure up to 600 new passenger and freight rolling stock. The trains, which will be up to 30% more energy
efficient than the old stock, began entering service earlier in 2019. The replacement program will take 5 years in total.
The issuer will provide annual public reporting on the green bond as part of its company-wide sustainability reporting. The
report will include the number of trains financed by the proceeds. Quantitative impact indicators, such as the estimatedelectricity saved and the corresponding amount of CO2 emissions avoided, will also be disclosed.
Climate Bonds view: A massive modal shift of passengers and freight from fossil fuel powered individual vehicles to a fully
electrified rail network is an essential part of the low carbon transition. It is great to see this modal shift taking place in
Italy and across the world, as we discussed in our special blog post.

New issuers
BayWa (EUR500m/USD560m), Germany, brought to market a 5-year senior unsecured green bond benefitting from an ISS
Oekom Second Party Opinion. The proceeds will be fully allocated to funding renewable energy projects, which aim toincrease the production, connection and distribution of renewable energy, particularly PV solar and onshore wind. The
issuer will publish a report on their website disclosing the allocation of net proceeds and associated impact metrics within
one year from issuance, and annually until the proceeds have been fully allocated.
Climate Bonds view: BayWa is a large corporate with activities in many countries. It can have a significant positiveenvironmental impact, which is not limited to renewable energy projects. We hope that BayWa’s successful debut willprompt the company to issue green bonds to finance projects in other areas of its business. A green issuance focusing on
agriculture, which represents 66% of BayWa’s total revenue would be a positive.

Freddie Mac (USD435m), USA, completed its eagerly-awaited market entry in late June. Proceeds will refinance Green Up
and Green Up Plus loans provided under its Multifamily Green Advantage scheme. Freddie Mac requires that qualifying
borrowers invest in efficiency improvements that result in a minimum of 30% savings in energy or water consumption
savings, with a minimum of 15% being for energy savings for loans originated in 2019 (or later), as listed under the issuer’s
Green Bond Framework, and a minimum of 25% savings for loans originated in 2018.
According to CICERO’s Second Party Opinion, Freddie Mac will report on use of proceeds and performance and impact
indicators regularly, both through its website as well as Bloomberg and also via the designated Multifamily Securities
Investor Access Tool and its Security Lookup.
Climate Bonds view: The US Agency MBS-market is estimated to be worth USD8.4tn. It a welcome development to see
additional issuers join Fannie Mae in this space to leverage some of the value of this market segment to energy and water
efficient properties. It is also heartening that both Agencies have raised their minimum thresholds on savings recently andintroduced a specific minimum for energy efficiency improvements. We look forward to future issuances from Freddie
Mac and will monitor its post-issuance reporting.

California Municipal Finance Authority (USD165m), USA, recently issued PACE notes with a 36-year tenor, rated by KBRA.
The bond is secured by 3,166 PACE assessments levied against 3,152 residential properties and 14 commercial properties
in 18 California counties. The average Assessment is approximately USD33,717 with an average annual payment of approx.
USD3,368 with a total balance of approx. USD150m.
Climate Bonds view: PACE programs facilitate the financing of renewable energy and energy efficiency projects on
privately owned residential and commercial properties with local government support. A total of 46 California counties areapproved under the two PACE Programs. This is the 30th PACE ABS issuance from California, indicating healthy growth inenergy efficiency financing in the state. The issued total now amounts to USD5.6bn.

Imperial Irrigation District (USD65.2m), USA, issued a 22-year green US Muni bond whose proceeds will refinance thepurchase of the Sun Peak 1 PV solar project. This follows the execution of a power-purchase agreement (PPA) for
approximately 23MW of energy from Sun Peak 1 in 2010, which the District purchased with the proceeds of a prior bond.
Climate Bonds view: The Imperial Irrigation District’s purchase of Sun Peak 1 is a great example of a District becoming
more self-reliant and able to source renewable power securely for the future. It is also good to see the green US Muni
universe continuing to expand. Green issuance from Californian agencies has been especially strong, and the state issending a powerful message to the rest of the country. We look to additional government agencies to follow, particularly
in other states.

Nissen Kaiun (JPY2.8bn/USD26m), Japan, issued a 10-year debut green loan with a Green1 rating from JCR. The funds will
be used for the installation of two types of scrubbers. The open-loop system cleans exhaust gases and particulate matter(PM) containing sulphur oxides (SOx) emitted from ships’ engines using seawater and discharges the seawater into the sea.
The hybrid scrubber system can be switched to a closed-loop system.

Loan drawdown amounts will be disclosed to participating banks at the same time as financial statements are submitted.
The issuer will also report to the banks on the reduction of pollutants per scrubber and the number of scrubbers installed.
Climate Bonds view: Shipping is still a highly polluting industry and requires more investment to reduce its emissions. The
installation of scrubbers is one of the measures for complying with IMO regulations that will become mandatory beginningin 2020. This is also the first green loan from Japan and the first one in 2019 to focus exclusively on waste projects.

RethinkWaste (USD48.8m), USA, issued its first green bond. The 15-year US Muni’s proceeds will be partly used torefinance the issuer’s solid waste enterprise revenue bonds from 2009, which funded improvements to the Shoreway
Environmental Center, including a new 70,200sqft materials recovery facility, and expansion of the station’s capacity tohandle organic waste. New efficiency improvements form the second part of the use of proceeds. Kestrel Verifiers
produced a SPO for the bond.
The issuer will publish information on the bond annually until the bond matures on the EMMA, the Electronic Municipal
Market Access web platform provided by the Municipal Securities Rulemaking Board. The disclosure will include a list of
projects and their descriptions; amounts allocated, and expected impact. Kestrel Verifiers will provide a post-issuance Useof Proceeds report, which will also be posted on EMMA.
Climate Bonds view: It is good to see increasing levels of issuance from US Munis. With RethinkWaste’s deal, California’s
green Muni bond total reached USD6.4bn. This is the fifth deal that finances waste management projects, and only thethird one to do so fully. Climate Bonds’ Waste Management Criteria are out for public consultation until August 2.

Rongshi International Finance (USD500m), China, issued its first green bond, which benefits from a Sustainalytics SPO. The
5-year benchmark USD-denominated bond will exclusively finance and/or refinance eligible projects that provide clear
environmental and sustainability benefits. The project categories include sustainable water and wastewater management
and renewable energy. The latter comprise two wind farms in the United Kingdom: Beatrice Offshore Wind Power Projectand Afton Wind Power Project.
Climate Bonds view: This deal is another example of a Chinese green bond financing wind farms in the UK. The issuer also
promised to provide more information on the impacts resulting from these projects. We hope to see more bonds of thisnature as the UK continues towards its zero carbon by 2050 goal.

South Central Connecticut Regional Water Authority (USD13m), USA, issued a 29-year green US Muni bond. The proceeds
will refinance a bond that funded the Great Hill Tunnel & Pipeline restoration project: a public water supply tunnel andpipeline conducting water from a 58.5bn-litre reservoir to customers in New Haven, CT and 9 surrounding towns.
Sustainalytics provided a SPO for the bond.
RWA will publish a report on the EMMA website, which will include the amount allocated to the eligible project and a
description of the project funded. Potential ramifications prevented/avoided will be disclosed as an impact metric.
Climate Bonds view: We are pleased to see more US muni issuers follow market convention by commissioning external
reviews for their instruments, as RWA has done. This is also the seventh green muni bond from the State of Connecticut,bringing total issuance to USD843m.

Vattenfall AB (EUR500m/USD570m), Sweden, entered the green bond market with a 7-year senior unsecured green bond.
The utility company will use the proceeds to finance renewable energy projects and infrastructure, energy-sector energy
efficiency (e.g. smart grids, energy recovery), the electrification of transport and heating, and industry projects, whichenable the transformation to fossil-free production, such as the HYBRIT3 project. Nuclear and fossil fuel-based production
projects are explicitly excluded.
CICERO provided an external review for the bond. Vattenfall is committed to publicly reporting on the bond’s proceeds
and impact until maturity. A list of impact metrics is included in the Appendix of the issuer’s Green Bond Framework.

Climate Bonds view: This benchmark-sized bond is the largest to date from the Nordic utilities sector. Vattenfall joins its
Norwegian and Danish peers Eidsiva Energi, Sogn of Fjordane Energi and European Energy in the market, bringing theissued total to 860m USD equivalent. We hope Vattenfall’s deal will stimulate further issuance from Nordic utilities firms.

Bonds issued before June 2019
BDO Unibank (USD150m), Philippines, issued a private placement to the IFC in January 2018. The proceeds are being used
to finance climate-smart projects in the areas of renewable energy, green buildings, and energy-efficient equipment in thePhilippines.
Climate Bonds view: The bond was previously Excluded but the IFC has recently confirmed to Climate Bonds that none ofthe proceeds would be allocated to fossil fuel power generation technologies, equipment or infrastructure, even if they
were to improve energy efficiency. We encourage issuers to clearly state the sectors energy efficiency measures relate toand confirm that there are no allocations to fossil fuel power generation.
The Philippines has been able to grow its green bond market significantly in the last couple of years. This was a landmark
issuance, the first from the domestic banking sector, where there is significant potential to increase the reach and visibilityof green bonds more than other issuer types.

China Banking Corp (USD150m), Philippines, issued an IFC private placement in October 2018. The proceeds will financeclimate-related projects in renewable energy, green buildings, energy efficiency and water conservation, in accordancewith the Green Bond Principles.
Climate Bonds view: As only the second issuance from a bank, the deal has the potential to increase the reach andvisibility of green bonds, likely more so than of other issuer types. The Philippine government has put in place key national
policies to fight climate change. China Banking Corp’s green bond – similar to BDO Unibank’s debut green bond – will see
the CBC scale up its investments in environmental projects, supporting the government’s target of 70% reduction in GHG
emissions by 2030.

Mill City Solar Loan 2019-1 (USD241m), USA, issued a 4-tranche ABS in March 2019. The notes, rated by KBRA, have alegal final maturity in March 2043 and are backed by a pool of mostly prime-quality residential consumer solar loans
provided by Loanpal to finance solar energy systems, including systems with energy storage. MCSLT 2019-1 has large
geographic concentrations, with California borrowers representing 32.17% of the outstanding principal balance as of theJanuary 31, 2019 cutoff date. The next largest state concentrations are in Texas (14.16%), Nevada (10.15%), Arizona(8.10%) and Colorado (5.89%).
Climate Bonds view: US Solar ABS keeps attracting new issuers as more homeowners are installing residential solar. While
California remains in the lead in terms of installations and popularity, it is good to see increasing adoption in othersunshine states. The transaction contributes to just over USD1bn of Solar ABS issuance in 2019, and USD6.2bn in total.

Pasukhas Group (MYR200m/USD49.2m), Malaysia, issued its debut green sukuk in February 2019. The issuer will use theproceeds to grow its portfolio of green assets. Eligible categories include renewable energy and energy efficiency,
sustainable land use, biodiversity conservation, remediation/redevelopment of contaminated sites, water infrastructure
and waste management.
As the first asset to be financed via the sukuk, Pasukhas has identified a small hydropower plant with an installed capacityof 3.2MW at Sungai Rek, Kelantan. The issuer will disclose information on the use of proceeds, project evaluation andselection and management of proceeds to investors in a memorandum. It will also aim to provide annual use of proceeds
and impact reporting on its website, according to the Second Party Opinion by RAM.
Climate Bonds view: Growth in Malaysia’s green bond market is good to see. To date, there have been no repeat issuers
from Malaysia. This deal is especially positive given that the issuer is a large corporate with operations in several sectors. It
will be interesting to see which assets Pasukhas Group decides to finance, and whether it will issue more green bonds tofund other business areas in the future. As the first green sukuk guaranteed by Danajamin Nasional, it could also open
doors to more issuers (and investors) for whom risk is a key concern.

SHREC ABS 1 LLC (USD38.6m), USA, issued a 2-tranche ABS in April 2019. The notes, rated by KBRA, have a legal final
maturity in June 2044 and are backed by the proceeds from the sale of solar renewable energy credits (“SHREC
Receivables”), generated under Connecticut Green Bank’s Solar Home Renewable Energy Credit (“SHREC”) program toConnecticut’s two investor-owned utility companies, The Connecticut Light and Power Company, a.k.a. Eversource Energy
and United Illuminating Company under two Master Purchase Agreements (MPAs).
The SHRECs will be generated from solar PV systems participating in Connecticut Green Bank’s Residential Solar
Investment Program. The bank aggregates these SHRECs into annual tranches and sells them to the utility companies at a
fixed, predetermined price over a 15-year period. The SHRECs in this transaction will be generated from 6,788 PV Systems
in Tranche 1 and 7,250 PV Systems in Tranche 2. Under the two MPAs, Eversource is required to purchase 80% of the
SHRECs created within each tranche and United Illuminating is required to purchase the remaining 20%.
Climate Bonds view: This transaction presents a new approach to funding residential solar. The fixed price of the credits
provides certainty to the utility companies and investors. It also demonstrates how local government can incentivise a shift
to solar: the Green Bank provides incentives to homeowners and third-party system owners to deploy residential PV
Systems, and acquires the renewable energy certificates pursuant to Public Act No. 16-212 and Public Act No. 15-194.

Vodafone (EUR750m/USD840m), UK, issued a 7-year senior secured green bond in May 2019, for which Sustainalytics
provided an external review. Proceeds are being allocated to energy efficiency, renewable energy and green buildings.
Sharing economy aspects, such as electric vehicle sharing and industry automation, are also included.
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Energy efficiency includes support for the roll-out of Internet of Things (IoT) technologies and efficiency inVodafone’s operations. IoT examples include smart metering, smart parking and other smart city applications.

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Renewable Energy includes solar, wind, biofuel and absorption cooling.

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The Green Buildings category includes new buildings or retrofits of existing buildings with third-party certification
standards such as LEED (Gold or higher) and BREEAM (Very Good or equivalent). Green buildings will need to be in
the top 15% most efficient buildings in the region, aligned with CBI’s Low Carbon Buildings Criteria.

Vodafone will report annually on the allocation of proceeds and on the impact of the green project portfolio until proceeds
have been fully allocated. The reporting will be published on Vodafone’s corporate website.
Climate Bonds view: As the need for data and connectivity increases and bumps up energy demand, it is important toengage the ICT sector in emission reductions through green financing. Vodafone is the first UK ICT company to enter thegreen bond market. The cumulative issuance from the sector globally now amounts to USD6.1bn.

Repeat issuers – June
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Alliander NV: EUR300m/USD342m
Anglian Water: JPY7bn/USD65m
Bank Sinopac: TWD3bn/USD96m
BNP Paribas: EUR60m/USD68m
Boston Properties: USD850m
DNB Boligkreditt: SEK700m/USD75m – Certified Climate Bond (Programmatic Certification)
EBRD: HUF29bn/USD100m
EIB: AUD400m/USD278m
Engie: EUR1.5bn/USD1.7bn
Fannie Mae: USD2.3bn
Federal Government of Nigeria: NGN15bn/USD42m
Fremont Union High School District: USD30m
Humlegarden Fastigheter: SEK450m/USD49m
ICBC: USD500m
IFC: COP35bn/USD11m
Japan Retail Fund Investment Corp: JPY7bn/USD65m
KfW: SEK7bn/USD742m

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KommunInvest: SEK5bn/USD524m
Kepco: USD500m
Kepco: USD500m
New Jersey Infrastructure Bank: USD8m
NY State HFA: USD49m
Orebro Kommun: SEK500m/USD53m
RATP: EUR500m/USD565m
Renewable Japan: JPY5.7bn/USD53m
Republic of Chile: USD1.4bn
Reykjavik Energy: ISK1.9bn/USD13m
Rhode Island Infrastructure Bank: USD32m
SBAB Bank: SEK3bn/USD317m
SNCF: EUR100m/USD114m – Certified Climate Bond (Programmatic Certification)
Stockholms Lans Landsting: SEK1bn/USD106m
Stockholms Lans Landsting: SEK1bn/USD106m
Sunnova: USD302m
Sunrun: USD204m
TenneT Holdings: EUR1.3bn/USD1.4bn
Vacse AB: SEK300m/USD32m
Vasakronan: SEK283m/USD30m
Westpac: EUR500m/USD568 m
Zürcher Kantonalbank: CHF200m/USD198m

Repeat issuers before June••••

Dividend Finance: USD235m – July 2018
Sunnova Energy (Helios 2): USD262.7m – November 2018
Sunrun Athena: USD445.4m – December 2018
Beijing Guozhong Biological Technology: CNY650m/USD89m – April 2019

Pending and excluded bonds
We only include bonds with at least 95% proceeds dedicated to green projects that are aligned with the Climate Bonds
Taxonomy in our green bond database. Although we support the Sustainable Development Goals (SDGs) overall and seemany links between green bond finance and specific SDGs, in particular SDGs 6, 7, 9, 11, 13 and 15, the proportion ofproceeds allocated to social goals should be no more than 5% for inclusion in our database.
Issuer Name

Amount issued

Issue dateReason for exclusion/ pendingStandard Chartered

EUR500m/USD565m

02/07/2019

Excluded (Sustainability/SDG bond)

Ahold Delhaize

EUR600m/USD678m

02/07/2019

Excluded (Sustainability/Social bond)

Kookmin Bank

USD500m

02/07/2019

Excluded (Sustainability/Social bond)Yancheng South District
Development and Construction
Investment Co., Ltd.
Shenzhen Energy Group Co., Ltd.

CNY1bn/USD145m

26/06/2019

Excluded (25% working capital)

CNY1.15bn/USD167m

24/06/2019

Excluded (proceeds not aligned)

Huaneng Tiancheng

CNY500m/USD72m

20/06/2019

Excluded (30% working capital)

Credit Agricole CIB

SDG150m/USD110m

09/07/2019

Pending (waiting for more information)

The Swedish Covered Bond

SEK6bn/USD640m

23/02/2019

Pending (waiting for more information)

Caisse Française de Finance

EUR1bn/USD1.1bn

19/02/2019

Pending (waiting for more information)

Green bonds in the market
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Activia Properties Inc: closed July 9
Prologis: closed July 10
Sekisui House REIT: closed July 11
Telekosang Hydro One Sdn Bhd: closing July 15
Posco: closing July 15
A2A: closing July 16
Japan Housing Finance Agency: closing July 16
Société Générale: closing July 17
IFC: closing July 17
Orix JREIT Inc: closing July 18
BKW Group: closing July 29
New York State Housing Finance Agency (USD9m tranche - Certified Climate Bond)

Investing NewsThe UK Government passed its net-zero 2050 target into law in late June. As part of London Climate Action Week last
week, it launched a Sustainable Finance Strategy. As a further show of its climate leadership aspirations, the UK is bidding
to host COP26 in 2020 jointly with Italy.
Another initiative launched last week is the United Nations and UK Government-backed Responsible Commodities
Facility. The Facility will issue USD1bn of green bonds in the next 4 years to finance farmers and producers who commit tousing degraded land as opposed to expanding into existing grasslands. The investment is expected to yield 180mt ofresponsibly produced soy and corn in the first decade. Climate Bonds CEO Sean Kidney spoke at the launch on July 4.
FTSE Russell has created the world’s first index to incorporate climate risk in government bond portfolios. The FTSE
Climate Risk-Adjusted World Government Bond Index (Climate WGBI) aims to quantify the physical and transition risk andresilience implications from climate change to sovereign debt.
Asset manager Amundi and the European Investment Bank have teamed up to develop a green credit market for Europe.
The programme, titled the Green Credit Continuum, will initially involve setting up a fund investing in high-yield corporate
green bonds, green private debt and green securitised credit. A scientific expert group will develop guidelines in line with
the EU Commission’s Sustainable Finance Action Plan.

The Santiago Stock Exchange in Chile reports that growing interest in green and social bonds, as instruments listed in thissegment of the exchange have now surpassed USD560m since mid-2018. The segment is the first of its kind in SouthAmerica, and its listing requirements are modelled after the Climate Bonds Standard.

Green Bond Gossip
The Financial Times reports that the widely anticipated Green Bund issuance from the Federal Government of Germany isnearing completion. A person with knowledge of the discussions remarked that green German government bonds could
draw in particularly good investor demand due to the country’s strong standing in the capital markets and the added
benefit of green assets.
German development bank KfW has stated that it plans to issue more green bonds in H2 2019. The planned additionalamount could take its total issuance to more than EUR20bn (USD22.5bn). Under current conditions, KfW would becomethe 3rd largest issuer globally, surpassing the Republic of France.
Colombia’s green bond market may see more activity this year with Energy companies Celsia and government-owned ISA
poised to be the next to tap green market, according to analysts.
The Portland Water District plans to issue USD6.5m in green bonds to finance improvements to public water supply,
service lines and other infrastructure in its 360km2 service area.
The University of Vermont and State Agricultural College is preparing to include USD40m of green bonds in a forthcoming
USD102m fund-raising. The proceeds of the green bond will be used to finance a new event centre that will be built to
LEED Silver specifications and designed to conserve water and energy.

Readings & Reports
The new TPI State of Transition Report 2019 from the Transition Pathway Initiative estimates that as few as 1 in 8
companies in highly emitting industries are reducing emissions in line with keeping temperature rise limited to 2 degrees.
Nearly half (46%) of companies are failing to integrate climate change into business decision-making.
A new survey conducted by UBS involving more than 30 central banks and sovereign institutions found that over 60% of
these entities do not want to exercise more active ownership on engaging with companies on climate change. The report
also found that more than half of them do not incorporate climate change as a risk in their portfolios beyond an ESG
framework – most cited a lack of and poor quality of data as the reason.
For more positive reading: an article in the latest issue of Anthropocene Magazine covers energy-positive buildings in
Norway, including a hotel. Examples of this new form of architecture can be found as far north as the Arctic Circle. The
creators hope to expand their projects across the world including the US.

‘Till next time,
Climate Bonds

Disclosure: Some of the organisations mentioned in this communication are Climate Bonds Partners. A list of Partners isavailable here.
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investment adviser. Any reference to a financial organisation or debt instrument or investment product is for information purposes only. Links to external
websites are for information purposes only. The Climate Bonds Initiative accepts no responsibility for content on external websites.
The Climate Bonds Initiative is not endorsing, recommending or advising on the financial merits or otherwise of any debt instrument or investment product andno information within this communication should be taken as such, nor should any information in this communication be relied upon in making any investment
decision.
Certification under the Climate Bond Standard only reflects the climate attributes of the use of proceeds of a designated debt instrument. It does not reflect thecredit worthiness of the designated debt instrument, nor its compliance with national or international laws.
A decision to invest in anything is solely yours. The Climate Bonds Initiative accepts no liability of any kind, for any investment an individual or organisation
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