Fluvius System Operator
Melle, Belgium| Invested through |
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|---|---|
| Asset Classes | Impact bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | BE0002755362 |
| Industry group | Utilities |
| Aligned with SDGs |
Fluvius is a Flemish inter-municipal utility and system operator, from 11 Flemish municipalities. The company is responsible for regulating the electricity and gas distribution, including public lighting and district heating, regulating the sewerage system as well as cable TV (CATV) infrastructure business.
Fluvius' path to climate neutrality in 2050 focuses on reducing energy consumption, maximizing the availability of renewable energy, future proofing the grid and creating new possibilities for its customers, such as hybrid girds.
The company has around 5,500 employees and was founded through a merger in 2018, resulting in the largest utility company in Flanders.
Investment rationale
Electricity grids play a key role in the shift towards renewable energy. As the supply of renewable energy can be volatile, grids need to be adapted to handle this. In addition, in Belgium cities, half of the energy expenditures go to street lighting, indicating the need for energy efficiency measures and smarter solutions.
Fluvius' green bond finances digital metering of electricity grids, the switch to LED-technology of public lighting in the 300 Flemish cities and municipalities, sewerage grids expansion or renewal, and adaptation to the grid to connect and distribute more decentralised renewable energy.
65.5% of the proceeds of this green bond are allocated to the Resource Transition and 34.5% to the Energy Transition. The contribution to Resource Transition comes from 65.5% of proceeds allocated to Sustainable Water & Wastewater Management.
The contribution to Energy Transition comes from 26.6% of proceeds allocated to Energy Efficiency, and 7.9% of proceeds allocated to Renewable Energy.