| Invested through |
|
|---|---|
| Asset Classes | Impact bonds & Corporate bonds |
| Impact strategy | Impact Equities and Bonds |
| ISIN code | XS2649518953, XS2209794408, XS2034715305, XS1897340854 |
| Industry group | Banks |
| Aligned with SDGs |
KfW, based in Frankfurt am Main, Germany, operates as the promotional bank of the Federal Republic of Germany. It was formed in 1948 after World War II as part of the Marshall Plan. Its capital is held by the German federal government (80%) and the federal states (20%), but the shareholders do not receive any dividend. The bank provides the general funding of the promotional institutions of German federal states, but also for housing construction and modernisation, infrastructure, education, and other social projects, besides doing transactions on behalf of the federal government. In addition, the company offers financing for German and European export activities, and for projects and investments in German and European interests. Further, it promotes developing and transition countries on behalf of the federal government; and provides private enterprise financing. Its goal is to promote sustainable economic, social, and ecological development in- and outside Germany. The company has more than 6,000 employees worldwide.
Investment rationale
KfW promotes the transition to a sustainable society by financing projects mainly in Germany and developing countries. KfW follows the UN Principles for Responsible Investment and an in-house team safeguards that comprehensive social and environmental standards are applied. It has a group-wide exclusion list for its financing activities and investing activities for its own account. KfW aims to contribute sustainably to the four current mega trends it identifies worldwide.
KfW is very active in the green bond market, and since 2014 issues and invests in green bonds. It dedicates 40% of total new commitments to finance environmental mitigation and adaptation measures and the bank’s own operations are carbon-neutral since 2006. The company is very transparent in its reporting on energy consumption, carbon footprint, water use, paper use and waste. Furthermore, it has a gender equality program in place, to promote equal opportunities at KfW.
XS2649518953, XS2209794408, XS2034715305
100% of the revenues of these three green bonds is aligned with the Energy Transition. The contribution to the Energy Transition comes from 71% of proceeds allocated to the impact objective Energy Efficiency, 27% of proceeds allocated to Renewable Energy, and 2% of proceeds allocated to Terrestrial & Aquatic Biodiversity Conservation.
XS1897340854
100% of the proceeds of this social bond is aligned with one or more Triodos Transitions. 69% of revenues is aligned with the Societal Transition and 31% of revenues is aligned with the Resource Transition. The contribution to the Societal Transition comes from 69% of proceeds allocated to the impact objective Affordable Housing.
The contribution to the Resource Transition comes from 31% of proceeds allocated to the impact objective Environmentally Sustainable Management of Living Natural Resources & Land Use.