Zurich Insurance has doubled the amount it plans to invest in green bonds to $2 billion, citing growing appeal in Europe.
The insurer said in November 2013 that it wanted to invest up to $1 billion in green bonds on its US balance sheet, which reflected the predominance of USD-denominated green bonds issued by supranationals at that time.
Since then, an increasing number of green bonds have been issued in the European markets, and new kinds of issuers, such as municipalities and corporates, have also appeared.
Zurich is looking to integrate the newly available green bonds in existing bond portfolios on the balance sheets of Zurich companies in Europe. The insurer said this will permit a maximum flexibility to reflect the new breadth of the market, and will cover three main European currencies - Euro, British Pound and Swiss Franc.
Cecilia Reyes, chief investment officer said: “Managing over $200 billion of Zurich's assets, we acknowledge a wider responsibility. Green bonds are a great example of an investment that allows us to have a positive impact on society and the environment, while meeting our financial criteria. Through green bonds investments, Zurich will effectively support more sustainable growth and development around the globe – without sacrificing investment return. That is why, we now commit to double our investment in green bonds.”
Zurich Insurance, Green Bonds, Europe, Cecilia Reyes