British bank Barclays has launched its inaugural Green Structured Notes Program to both retail and institutional investors.
The bank described the offering as a differentiated green investment opportunity, with the structured note payoff based on a green index.
The green index excludes the stocks of companies with 'adverse traits', such as having a heavy reliance on thermal coal operations.
The index also targets firms with the lowest carbon emissions per unit of revenue/gross value added, as well as focusing on companies pushing towards a specific goal, such as clean energy or carbon capture.
The bank said both the investment and proceeds would follow its internal green frameworks. It added that these parameters will be verified by an external third party.
C.S. Venkatakrishnan, head of global markets and co-president of BB PLC at Barclays, said: “We continue to see increased client demand for sustainable investment opportunities and today’s launch of [this] program provides clients with a new and innovative opportunity to access the green market.”
Sasha Wiggins, Group Head of Public Policy and Corporate Responsibility, added that Barclays' commitment to the goals of the Paris Agreement - a legally binding international treaty on climate change adopted in Paris in 2015 - was part of its wider ambitions to be a net zero bank by 2050.
"This innovative investment offering to our clients is a new and important part of delivering that commitment in order to help accelerate the global transition to a low carbon economy,” Ms Wiggins said.
The proceeds of the notes are allocated to the financing or refinancing of eligible green activities, such as renewable energy, energy efficiency and sustainable transportation loans and contribute to Barclays Net Zero Ambition.
The bank also wants to provide £100billion of green financing by 2030.