Green bond investments
Since 2014, the ESM has been involved in the ‘Green Bond market’ with the intention of supporting the development of sustainable investments. The ESM allocates capital to ‘green bonds’ when the characteristics and interest rate levels of issued securities are in line with Article 22 of the ESM Treaty, the ESM’s investment objectives and the ESM’s Investment Guidelines.
Since 2014, the ESM’s exposure to ‘green bonds’ averaged around €300 million. The bonds are diversified across a number of euro area issuers and supranational institutions.
Sustainable usage of resources
The ESM is also committed to preserving the environment as a sustainable user of resources in its day-to-day operations. To this end, the ESM has rolled out several initiatives. For example:
The ESM has obtained the SuperDrecksKescht® Certification of the Luxembourg Government on the sound treatment of available raw material and energy sources and the recycling of waste.
Carbon footprint report
As an important step towards integrating ESG best practices in its operations, the ESM started in 2019 to examine and report the carbon footprint arising from its internal operations. The identification, measurement and reporting of greenhouse gas emissions are key for designing and implementing appropriate reduction measures. In order to demonstrate its commitment to transparency and to enhancing its environmental performance over time, the ESM decided to publish its 2018 Carbon Footprint Report.