The UK Green Investment Bank (GIB) has published the policies that will underpin its investment strategy. It says each investment will be assessed, continuously monitored and reported.
Shaun Kingsbury, chief executive of GIB, said, “Publishing these policies is an important milestone for GIB. We are tasked with a double-bottom-line of being both green and profitable.
“These policies show how we have put our green commitment at the heart of our business model and how we assess, monitor report on green impact at every stage of the transaction process.”
The bank said it defies ‘green impact’ through five measures: reducing greenhouse gas emissions, increasing natural resource efficiency, protecting the natural environment, enhancing biodiversity and promoting environmental sustainability.
Each investment made must contribute to at least one of these measures. Once an investment has been approved the monitoring process will span all aspects of the investments green performance, with detailed reporting to be published annually.
The GIB received the go-ahead from the EU in October 2012 and launched the following month. It aims to drive investment in the UK’s green sector.
Since the bank launched, it has approved backing for 21 green projects including an offshore wind deal with Masdar and an £11m investment in a biomass plant. More than £700m has been committed to the projects, mobilising a further £2 billion in private finance.
The GIB is asking for stakeholder feedback on the newly published policies in order to improve them and “strengthen wider industry practice”.