The University of Helsinki invested in a Green Bond Fund

The University has made a significant impact investment by investing in a Green Bond fund.

The University of Helsinki has again taken a step forward in terms of responsible investments by investing in the NN Green Bond Fund. The fund is managed by the Dutch asset management company NN Investment Partners, who are renown within responsible investments. The invested amount is over 40 million euros. The NN Green Bond Fund is one of the world’s first green bond funds.

The fund invests in green bonds that are verified by an independent second party. The loans are earmarked in the sense that proceeds may only be used for predefined projects that reduce the environmental burden and support sustainable development.

In most cases, the projects relate to investments aiming to reduce emissions generated by businesses. The company can for example invest in a renewable energy source such as solar or wind power, transportation with lower emissions or green buildings.

– This is true impact investing that promotes sustainable development and is in line with the values of the university. Our investment also takes the university forward on its path towards a carbon neutral portfolio, says University of Helsinki Quaestor Marjo Berglund.

Read more:

University of Helsinki pub­lishes its first re­port on re­spons­ible in­vest­ments

In­creas­ingly re­spons­ible in­vest­ments by the University of Helsinki – aim­ing for a car­bon-neut­ral port­fo­lio

Securities investment at the University of Helsinki

Green Bonds
  • Green Bonds are bonds where the proceeds are separated from the general account of the issuer and only used for environmental friendly projects.
  • Green Bonds finance projects that create benefits for the climate or the environment. Hence, Green Bonds are also called Climate Bonds.
  • The first Green Bond was issued in 2007 by the European Investment Bank but the market only really started to grow in 2013/2014.
  • The Green Bond market has grown to around EUR 600bn globally and keeps expanding very fast.
  • Green Bonds have similar risk-return characteristics as regular bonds.
  • Most Green Bonds finance renewable energy projects, clean transportation projects or green buildings.
  • Green Bonds are independently verified before issuance (“second party opinion”).
  • After issuance, an impact report is provided by the issuer to prove that the proceeds have been used for environment friendly projects
  • Information about the Green Bond Principles
  • The Climate Bonds Initiative also gives information on Green Bonds