Westpac launches world’s first certified Green Tailored Deposit
26 November, 2018
Westpac today announced the launch of the world’s first Green Tailored Deposit to be certified by the internationally recognised Climate Bonds Initiative (CBI).
The Green Tailored Deposit is a medium to long term investment product (1-5 years) with a minimum transaction amount of AUD $1 million, designed for investors who want or need investments that genuinely contribute to addressing climate change.
All deposits are associated with a defined pool of eligible assets or projects which meet the strict CBI criteria, which can include renewable energy, low carbon transport, low carbon buildings and water infrastructure.
Westpac Institutional Bank CEO Lyn Cobley said: “This is a great example of Westpac’s customer driven innovation. The new green tailored deposit delivers an innovative solution for customers seeking an independently certified green investment product.”
“Westpac has long recognised that climate change is one of the most significant issues we face as a society. We know it will impact the long-term prosperity of our economy and we are committed to playing a leading role in supporting the transition to net zero emissions”.
The Climate Bonds Initiative is a not-for-profit organisation that has produced the Climate Bonds Standard which is used globally by bond issuers, governments, investors and the financial markets.
The Climate Bonds Standard provides clear, scientific criteria for selection and monitoring of assets and projects and the verification of the environmental integrity of investments. Westpac’s Green Tailored Deposits have been certified and will also be verified annually by an independent specialist.
CEO of the Climate Bonds Initiative Sean Kidney said: “Westpac has provided a brilliant green option with solid climate credentials. Investors with purpose now have an opportunity to put their money to work addressing the biggest long term threat we all face, climate change”.
“It’s a simple choice: do we want our investments to do good, or not? Westpac has made it easy to decide.”
In announcing the launch today, Westpac was pleased to confirm the City of Sydney Council and the New South Wales Central Coast Council as the first investors.
City of Sydney Lord Mayor Clover Moore said: “Over the last 14 years, the City of Sydney has been reducing our environmental footprint and investing in sustainability programs to empower residents, businesses and industry,”
“In line with our robust investment strategy, we have called on our financial partners to create new and sustainable products. This is a significant step forward and will allow the City to more responsibly invest Council funds in sustainable projects, while meeting our regulatory obligations.”
Central Coast Council Mayor Jane Smith said “Central Coast Council is committed to delivering a smart, green and liveable region. Green investments are an innovative and tangible way we can take action to address climate change and make a real difference to the future of our community.”
Lyn Cobley said there was expected to be strong demand from local governments and other organisations which may have a green investment mandate or a commitment to invest in climate change solutions.
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