The City of Sydney is investing in the world’s first independently certified scheme for ‘green’ investments which address climate change through renewable energy, sustainable transport, waste and water projects.
Westpac’s Green Tailored Deposit scheme, to be launched later in the week, is a medium to long-term investment product (1-5 years) with a minimum transaction amount of $1 million, designed for investors who want/need investments that genuinely contribute to addressing climate change.
The City of Sydney is the first organisation to invest in the scheme, committing $10 million over a five-year term.
Under the scheme, the City’s $10 million investment will only be available for projects that have been certified by the Climate Bonds Initiative, a not-for-profit organisation which developed the Climate Bonds Standard, an international standard which holds clear, scientific criteria for the selection of assets and projects and verifies the environmental integrity of investments.
In announcing the news, Lord Mayor Clover Moore said that over the last 14 years, the City of Sydney has been reducing its environmental footprint and investing in sustainability programs to empower residents, businesses and industries.
“In line with our robust investment strategy, which allows us to maintain a strong financial position and deliver the high quality, well-designed facilities and infrastructure our communities are accustomed to, 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,” the Mayor said.
Westpac Institutional Bank CEO, Lyn Cobley also said 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,” she said.
The City of Sydney’s Chief Financial Officer, Bill Carter, also said the City will continue to explore other investment opportunities that take action on climate change.
“We hope this will kick-start many more green investment opportunities across Australia while demonstrating leadership among local government agencies.”