Trucost helps asset manager quantify green bond fund carbon savings

By Trucost News

This article was originally published on TRUCOST and is republished with permission.

French asset manager Humanis Gestion d’Actifs is saving 1,400 metric tons of greenhouse gas emissions per year for every €1 million it invests in green bonds, according to analysis by Trucost.

Gate at sunrise

Humanis commissioned Trucost to quantify the carbon savings achieved by its €175 million fund which invests exclusively in green bonds from Euro-labelled issuances financing energy efficiency and renewable energy projects.

Being able to quantify the savings has enabled Humanis to achieve third-party certification of the fund’s environmental benefits – the Transition Ecologique et Energetique pour le Climat (TEEC) label from French certification company Novethic. Disclosing data on avoided greenhouse gas emissions is a key requirement of the TEEC label. Trucost will continue to work with Humanis to monitor the environmental benefit of its fund on a quarterly basis.

Green bonds are an important way to finance the transition to a low-carbon economy. The bonds are issued by organizations to raise money specifically for projects with an environmental benefit such as renewable energy. Providing robust, quantified data on the environmental benefits is vital to support confidence in the green bond market.

To date in 2016, green bonds worth $51.4 billion have been issued, up from a total of $42.2 billion in 2015, according to data from The Climate Bonds initiative.1

Humanis’ Head of Responsible Investment Gregory Schneider Maunoury said: “Quantifying the actual environmental impact of a green bond is becoming key. As an asset manager, we also think we should disclose the consolidated carbon savings of the fund. Our green bond fund may be used as a decarbonisation tool. Moreover, it is a simple way to invest in low-carbon assets.”

Trucost’s Chief Executive Officer Dr Richard Mattison said: “As the green bond market grows, so too will scrutiny over its contribution towards achieving a sustainable, low-carbon economy. Trucost is ideally placed to provide green bond issuers with the data they need to demonstrate the benefits of their projects – not just on carbon, but other environmental impacts such as water use and air pollution.”

View all reports