Building energy-positive homes in Hamburg

We invest in green bonds as part of Cushon’s Sustainable Investment Strategy. A green bond works like a loan to fund environmental projects. Investors lend money and receive interest payments in return. The money must be used for projects that benefit the planet. 

What’s the investment?

KfW is Germany’s state-owned development bank. It’s run by the government to fund projects that help society and the environment. KfW is one of the world’s biggest issuers of green bonds. 

We’ve invested in one of KfW’s green bonds, which finances 42 apartments in Hamburg. These apartments feature an award-winning, energy-positive design. That means these buildings make more energy than they use. They have solar panels on the roof. They have special insulation to keep heat in. They use smart heating systems. All of this means they create extra clean energy. That extra energy goes back into the grid for others to use. 

These aren’t test buildings or experiments. They’re award-winning homes where people really want to live. They prove you can have great housing that’s also great for the planet. 

What’s the impact on society?

Buildings create a lot of carbon emissions. Changing how we build homes is key to reaching net-zero goals.  

The projects funded by KfW’s green bonds avoided 1.9 million tons of greenhouse gas emissions in 2022. That’s like taking hundreds of thousands of cars off the road. 

The Hamburg project supports several UN goals. It provides affordable and clean energy. It shows innovation in infrastructure. And it helps create sustainable cities. People living in these homes pay lower energy bills. When energy prices go up, homes that make their own power become more valuable. The ideas tested in Hamburg can be used in other cities too. This helps speed up the move to sustainable housing everywhere. 

Why is your money being invested this way?

Green bonds give us two things: environmental impact and financial security. This KfW bond is backed by the German government. This provides strong credit quality and stability for pension investments. 

The bond complies with the International Capital Market Association’s Green Bond Principles, ensuring transparency about how funds are used and the environmental outcomes achieved. 

As governments worldwide implement stricter building regulations and carbon pricing, properties that already meet future standards become more valuable. As such, the award-winning design of these Hamburg apartments supports long-term value and market resilience. 

Sustainable infrastructure is one of the largest investment opportunities ahead. Investing in projects like energy-positive housing positions our members to benefit from this economic shift. It also contributes to solutions the world needs. 

Important information on case studies: The case studies provided in this document are for illustrative purposes only and do not purport to be recommendation of an investment in, or a comprehensive statement of all of the factors or considerations which may be relevant to an investment in, the referenced securities. The case studies have been selected to illustrate the investment process undertaken by the Manager in respect of a certain type of investment, but may not be representative of the Fund's past or future portfolio of investments as a whole and it should be understood that the case studies of themselves will not be sufficient to give a clear and balanced view of the investment process undertaken by the Manager or of the composition of the investment portfolio of the Fund now or in the future.

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NatWest Cushon