Independent financial services provider Fedgroup, headquartered in Johannesburg, has announced it signed the Green Bond Pledge, becoming Africa’s first ever signatory.
Fedgroup says the move confirms its commitment to financing long-term infrastructure and capital projects that address environmental impact and climate risk, through its innovative Impact Farming venture.
The Green Bond Pledge calls on signatories to incorporate low carbon, resilient and sustainable solutions when planning, designing and building or rehabilitating infrastructure assets, and is also a declaration that reinforces the goals of the Paris Agreement.
Green bonds add to beneficial environmental and climate outcomes and signal that these objectives have been deliberately incorporated into the planning and deployment of infrastructure projects.
Fedgroup is excited to be one of the issuer signatories of the Green Bond Pledge, as it sets its sights on becoming a major player in the local green finance sector, which aims to facilitate investment in green initiatives that will support South Africa’s transition towards a green economy.
Suraj Lallchand, Director of Ventures, Fedgroup, says: “We launched our Impact Farming platform six months ago and the uptake of green assets by retail and institutional clients has exceeded our expectations.
“It is a natural progression for the company to now set its sights on Green Bond issuance, as it aims to consolidate its market offering and become a significant player in South Africa’s green finance market.
“Our pledge reiterates our commitment to advancing green infrastructural development in South Africa and the region.
“The spirit of the Green Bond Pledge resonates strongly with our commitment to our green investments.”
Launched by ex-UN climate Chief Christiana Figueres last year, the Green Bond Pledge is a response to the growing trend by investors to scrutinise long-term infrastructure and capital projects – which are typically financed through bonds – for sustainability.
Traditional infrastructure such as transportation, water, wastewater, buildings, energy and other projects need to be adaptive and resilient to climate-related risks‚ instead of creating unintended climate problems.
The Pledge is a joint initiative developed by international climate finance and sustainability groups, including the Climate Bonds Initiative, Mission2020, CERES, CDP, Citizens’ Climate Lobby, California Governor’s Office, California Treasurer’s Office, Global Optimism, NRDC and The Climate Group.
Signatories include the Government of Hong Kong, US State Treasurers of California, New Mexico and Rhode Island, the Cities of Asheville and San Francisco, King County, San Francisco Public Utilities Commission, Australian pension fund Local Government Super, Luxembourg Green Exchange, Global New Energy Finance and R3 Returns.