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Apple issues second green bond, a $1 billion bond to finance renewable energy & closed-loop supply chain

Yesterday Apple issued its second “green bond”, a $1 billion bond dedicated to financing renewable energy, energy efficiency at Apple facilities and throughout its supply change, to close its supply chain loop, and procure safer materials for its products. 

The bond offering includes a specific focus on helping Apple meet a goal of

  • developing a closed-loop supply chain and
  • using only renewable resources or recycled material in the manufacture of its products.

The bond is to mature in 2027 and will yield 95 to 100 basis points more than Treasuries. Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged the sale.

Investors are seeking lower-carbon investments. Demand for green bonds is growing significantly.

According to the Climate Bonds Initiative, in 2016 $81 billion of green bonds were issued. This is double the number of green bonds that were issued in 2015.

See:

“Apple Issues a Second Green Bond to Finance Clean Energy” | Alex Webb, Bloomberg, 13 June 2017

“Apple issues $1 billion green bond after Trump’s Paris climate exit” | by Valerie Volcovici, Reuters, 13 June 2017

Climate Bonds Initiative | “Climate Bonds Initiative is an international, investor-focused not-for-profit. We’re the only organisation working solely on mobilising the $100 trillion bond market for climate change solutions.”

#Apple #finance #greenbond #GoldmanSachs #BankofAmerica #JPMorganChase #renewableenergy #cleanenergy #investments #bondmarket #climatechange #climatechangesolutions

 

 

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Market Solutions for Environmental Challenges

Goldman Sachs today signed a long-term Power Purchase Agreement (PPA) with a subsidiary of NextEra Energy Resources, LLC.

The agreement will enable the investment and development of a new 68 megawatt wind project in Pennsylvania. The wind project is expected to facilitate up to 150 construction jobs and, once operational, result in the reduction of more than 200,000 tons of greenhouse gas emissions every year.

Goldman Sachs reiterates its commitment to market solutions for environmental challenges.

 “We are committed to being a leader in the development of renewable energy. By enabling this new wind project to come online, the agreement will help grow the renewable grid and contribute to the momentum behind a lower carbon economy.”

Lloyd C. Blankfein, chairman and chief executive officer of Goldman Sachs

The PPA with NextEra Energy Resources is a collaborative effort between Goldman Sachs’ commodities trading group (J. Aron) and its Corporate Services and Real Estate department.

Goldman Sachs has achieved its carbon neutrality commitment. The company is working towards achieving its goal of 100 percent power for its global electricity needs by the year 2020.

Goldman Sachs is a member of the RE100 initiative, “the world’s most influential companies, committed to 100% renewable power.”

See:

“Goldman Sachs Signs Long-Term Power Purchase Agreement to Spur Renewable Energy Growth and Jobs” | Press Release, 12 June 2017

“Our Operational Impact” | Goldman Sachs Environmental Stewardship

RE100

#realestate #resilience #cleanpower #renewableenergy #windenergy #PPA #GoldmanSachs #tech #greenhousegasemissions #climatechange #market #marketsolutions

 

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a ‘mainstream’ approach to ESG | finding the “metrics that matter”

Goldman Sachs highlights “the metrics that matter, a ‘mainstream’ approach to ESG.”

Seeking to identify companies with long-term growth potential, Derek Bingham of Goldman Sachs Research’s GS SUSTAIN team and his colleagues study which sustainability measures most closely align with returns over time.

Investors can improve their risk analysis and returns, he says, by identifying sustainability metrics that offer hard data (e.g., resource efficiency for a metals company, employee turnover for an investment bank) that correlate with a company’s long-term stock performance.

There is an opportunity for portfolio managers to identify which ESG metrics matter most and invest accordingly.

Bingham recommends a “holistic view” and discourages the “silo” effect.

Listen to the Goldman Sachs podcast Episode 63: The Metrics that Matter – A ‘Mainstream’ Approach to ESG”

#GoldmanSachs #ESG #riskanalysis #investmentreturns #resilience #data #metrics #finance #longtermgrowth

“Episode 63: The Metrics that Matter – A ‘Mainstream’ Approach to ESG” | Derek Bingham, GS SUSTAIN, Goldman Sachs Research, & Jake Siewert, Global Head of Corporate Communications, Podcast: ‘Exchanges at Goldman Sachs,’ recorded 2 May 2017