First Green Bond with Austrian Ecolabel

What is a Green Bond?

Green Bonds are a special form of bond. Money is raised that must then be invested in green or sustainable projects - virtually earmarked for a specific purpose. This could be, for example, the construction of a wind farm, the electrification of a railway line or the installation of a new, more efficient hydropower turbine in an existing power plant. The idea behind this is that the money from the bond is used to finance projects that help to achieve environmental goals - for example, by actively contributing to climate protection through CO₂ reduction.

A question of credibility

A Green Bond awarded with the Austrian Ecolabel must meet a number of requirements: clearly, there is no financing of projects related to fossil fuels, armaments, nuclear power or genetic engineering. By the way, the same applies to the company issuing the bond - for example, the Green Bond of a coal producer or nuclear power producer cannot be awarded an Ecolabel. A so-called Green Bond Framework must also determine in advance in which areas projects are to be financed.

The money earned may only be used for green projects. In addition, transparency and reporting requirements ensure that customers have an insight into what happens with the money - in other words, above all, which projects are financed and what sustainability impact they have.

The Green Bond of HYPO NOE

The now certified Green Bond of HYPO NOE primarily finances non-profit housing construction in Vienna and Lower Austria. It takes into account that the buildings are among the top 15% in terms of greenhouse gas emissions. The impact of the financed projects is also assessed - for example, by calculating how much greenhouse gas emissions were saved by the project measures.

More information can be found here: www.hyponoe.at/en/ihre-hypo-noe/nachhaltigkeit or

at: https://www.umweltzeichen.at/de/produkte/finanzprodukte?cert_number=UW+1350