Switzerland’s Biggest Insurer Is Going to Double Its Investments in Green Bonds to $2 Billion

Zurich Insurance Group, Switzerland’s biggest insurer, intends to double its planned investments in green bonds, according to Bloomberg.

The 75th biggest publicly traded company in the world as of 2013, Zurich had already intended to invest $1 billion. But now it’s upped that to $2 billion, citing the bonds’ growing appeal in Europe.  

“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,” Zurich’s Chief Investment Officer Cecilia Reyes said in an emailed statement.

Bonds are a type of debt instrument used to finance various projects and long-term investments, often used by governments.  The bond issuer receives the money paid for the bond, and in return pays a regular interest rate to the bond purchaser, and eventually pays off the entire bond. Green bonds specifically were first developed by the World Bank in 2008 to fund projects specifically aimed at mitigating and adapting to climate change.  They offer a level of risk and returns that’s in line with traditional debt of the same maturity and rating.

Switzerland’s Biggest Insurer Is Going to Double Its Investments in Green Bonds to $2 Billion