Project Green Kangaroo is a sustainable investment solution which allows investors to align their financial objectives with net zero emission targets, while supporting the financing of low emissions energy transition.
Project Green Kangaroo is the launch of the first ever forward looking climate transition index using dynamic climate scenarios in Australia, Australian Climate Transition (“ACT”) Index, and the development of investment products. As the first product, we launched 8 year BNP Paribas Green Bond linked to the index. The ACT Index is dynamic and uses a unique scoring process. It was jointly established by ClimateWorks Australia, ISS ESG and The Centre for Quantitative Finance and Investment Strategies at Monash University.
See the press release to learn more
This initiative is developed through a collaboration with our partners. Please click the logos to learn more about our partners:
The first launch is supported by a group of initial institutional investors who have invested a total amount of AUD 140mn
BNP Paribas is a repeat issuer in the green bond space with a good track record of successful transactions, making use of a robust and transparent asset selection process.
- Selection of eligible green assets by BNP Paribas Green Bond Committee, based on internal policies, eligible sectors and countries, and loan features
- Eligible sectors include Renewable Energy, Energy Efficiency, Green buildings, Transportation, Water Management and Water Treatment, and Pollution prevention and control
- Review and assessment of the eligible green assets performed by independent third party
- Annual reporting on Eligible Green Assets and their environmental impact, on the allocation of the use of proceeds, and on the balance of unallocated proceeds; Assurance report provided by auditors ex-ante and on an annual basis.
In 2015, BNP Paribas have launched Project Tera-Neva, which acted as a seed to develop the sustainable structured investment market in Europe. Together with the unique Australian Climate Transition index, we believe this first issuance of Project Green Kangaroo can be the next seed for change, driving the development of sustainable structured investments across Australia and the wider Asia region.
Click on the video to learn more about the Project Green Kangaroo
AUSTRALIAN CLIMATE TRANSITION (“ACT”) INDEX
The first forward-looking index reflective of future climate transition risks and opportunities for Australian companies.
Together with overseas regulators and governing bodies, all three of Australian main financial regulators now have strong statement for their position on climate change and these regulators started urging investors to use scenario analysis to assess their climate-related risks and opportunities.
90% of investors in Australia and New Zealand identified lack of investable opportunities with appropriate risk return factors as the single largest inhibitor to growing green investment1.
Currently few indices in the market capture climate change risk, but they are often based on past or current data, without considering several scenarios for a well below 2°C transition of the economy and the mitigation strategy of the companies.
ACT Index is the first ever forward looking index using the dynamic climate scenario analysis developed by ClimateWorks Australia, the companies’ mitigation strategy assessed by ISS ESG, and a unique and powerful scoring process to identify the companies who are likely to perform well during the climate transition in Australia.
1 Source: “Road to Return: Institutional investors and low carbon solutions”, Investor Group on Climate Change
ACT Index seeks to identify companies likely to perform well
in a world undergoing a well below 2°C transition, and that
will continue playing a part in the Australian economy in a
net zero emissions world:
- Enablers: Companies selling products / services that are
needed to support the transition towards the new
- Least Affected: Companies that are likely to be least
affected; current production technologies/ services are
compatible with the new environment
- Adaptors: Companies which operate in sectors likely to be
affected by major changes but are well placed to adapt in
the new environment
Stock selection process incorporates:
- Sector-level analysis: Based on five low-carbon climate scenarios for Australia (including a 1.5°C transition scenario), leveraging detailed sector research on technology, policy and social disruptions
- Company data: Robust company specific data, both qualitative and quantitative, on current status and future strategy
- Financial analysis: Minimization of financial risks such as liquidity and volatility