Inclusion, the second cornerstone of our strategy, focuses on thematic investments as an ideal way to address specific sustainability topics.
On the one hand, we target investments that contribute to the transition to a net-zero emissions economy and climate change mitigation. An effective way to achieve this is through investments in renewable infrastructure loans, green bonds and real estate.
On the other hand, we contribute to social improvements through investments in social infrastructure loans as well as sustainability and social bonds. In this context, we measure the real-world impact of our investments and align it to the Sustainable Development Goals (SDGs).
For our green bond investments, we use the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA) as a guidance. For social bonds we use the Social Bond Principles (SBP) and for sustainability bonds the Sustainability Bond Guidelines (SBG), both issued by the ICMA too.
Infrastructure loans are an attractive asset class for our investment portfolio given their credit quality and inherent liquidity premium. A significant proportion of our infrastructure loan investments is allocated to renewables, such as wind and solar energy, as well as to social infrastructure, such as hospitals, student dorms or affordable housing projects.
Additionally, our investments include impact private equity funds, which invest into companies achieving positive social and environmental effects.
For more specific information regarding our green real estate investments, please see our Climate action section.
With the objective to achieve a better and more sustainable future for all, the United Nations has adopted the SDGs in 2015. The SDGs, a collection of 17 goals, are a rising investment theme, especially since financing these is key to their successful achievement.
We aim to generate both attractive financial returns and a positive social or environmental impact that is linked to at least one of the SDGs. To measure the real-world impact, we have applied a standardised framework, which helps us to identify and to analyse our SDGs-aligned investments. Currently we mainly focus on the seven SDGs shown in the chart. Please go to our KPI tab for an overview of our SDGs-linked impact investments and metrics.