Just Group has become the first company in the UK's insurance sector to issue a green bond, raising £250m for investment in green infrastructure.
The financial services group said that the move is recognition of the “crucial role” that the insurance industry must play in the transition to a low-carbon economy.
Capital raised by the bond – which is sterling-denominated, maturing on 15 April 2031 with a reset date on 15 April 2026 – will go towards green buildings, renewable energy and clean transportation projects.
“Just has always been a market disruptor with a strong social purpose, so we are delighted to launch this green bond – the first of its kind in the UK insurance sector,” said CEO David Richardson.
“The financial services sector bears a weighty responsibility in leading the country towards a more sustainable way of life, and the green bond enshrines our commitment to supporting the transition to a low-carbon global economy.”
Just Group already has £360m invested in offshore wind and solar farms, and over £250m in social housing and local authority loans.
It also launched the UK's first ever 'green lifetime mortgage' in July, offering discounted rates to customers with the most energy efficient homes.
"ESG factors have long been a prime consideration in our investment decisions and are reflected in our significant financing of renewable energy, such as the Walsey and Hornsea wind projects and other positive social impact investments,” Richardson continued.
“The launch of the green lifetime mortgage also reflected our innovative approach to adapting products and services to support our customers, who are always looking for ways to make positives changes to their environmental footprint.”
Image credit: iStock
Author: Chris Seekings