There is always a greener side of everything
Getting everyone on board to live a carbon-free life is a serious challenge. Aside from everyday measures, it requires full commitment from both public and private sectors. The International Energy Agency recommends using a variety of tools, including Green bonds, to reach the $53 trillion in clean energy investment needed by 2035 to keep global warming below two degrees.
Green bonds are a great way to raise large amounts of money for environmental investments that might not otherwise be possible, or would be unprofitable with more expensive capital. They can encourage the adoption of new cutting-edge technologies, fund projects that create green jobs, and promote regional economic and climate resilience.
Green bonds are a significant development because they are a financial innovation designed to help institutional investors such as pension funds, insurance companies, mutual funds, and sovereign wealth funds invest in a more sustainable manner. For example, they can help institutional investors increase sustainable infrastructure investments by improving the liquidity of infrastructure assets.
Green is the way of the future for businesses
According to the Green Bonds Initiative, the total amount of sustainable debt has reached $1.7 trillion at the end of 2020. The use of green bonds is the main reason for the increase in this number.
Since 2007, the Green Bond market has grown dramatically, reaching a high of $1.1 trillion. Even though the pandemic has slowed almost every business, including sustainability efforts, the volume of new green bond issues has doubled from 2019.
According to Refinitiv, the use of Green Bonds reached a new high of $131 billion in the first quarter of 2021, revealing that climate issues have risen to the top of investors' priority lists. Green bond issuance has the advantage of allowing companies with sustainable goals to access capital more quickly. Green bonds, if carefully audited and monitored, can be used to fund a wide range of projects aimed at creating greener businesses or transforming existing ones.
Arçelik seeks out the market’s green side
Arçelik is committed to operating more sustainably to provide a greener future for all generations. The company’s 2030 Global Sustainability goals call for a green transformation of every operation. Green Bonds are an excellent way to meet that goal. In line with this target, the company issued their first green bond in May.
Arçelik's green bond, which has a nominal value of 350 million Euros and a five-year maturity, is a significant step forward for the industry. It is Turkey's first-ever corporate green bond issued in international markets. The proceeds from our green finance endeavors will be used to improve energy efficiency in products and production and invested in eco-efficient and circular economy products, pollution prevention and control, sustainable water management, green buildings, and renewable energy, and more.
Arçelik has also made the framework open to third party analysis, emphasizing that the company is ready to take on new challenges, including project selection, reporting and proceeds use.
Businesses should assume full responsibility in transitioning to a more sustainable life on our planet. Arçelik's focus is, and will always be, on financing projects that seek to limit the devastating impact we are having on the planet every day.