Forget Apple stock. Buy Green Bonds instead.
Apple is issuing $1.5 billion in green bonds to pay for a wide range of environmental initiatives. The issue is the largest ever to be undertaken by a U.S. company. And it is part of a trend that experts say will result in over $1 trillion in Green Bonds issued annually by 2020.
The Green Bond label helps environmentally focused investors separate the bonds from the trillions of dollars of other debt instruments.
According to Greenbiz, Apple filed a prospectus in mid-February with the Securities and Exchange Commission to use its Green Bonds to fund:
Investments in renewable energy sources, including solar and wind projects and associated energy storage technologies
Energy efficiency projects and upgrades across its facilities, products and supply chain; it will prioritize projects that help Apple earn additional LEED Gold or Platinum certification, or recognition under the BREEAM sustainable buildings program
Water efficiency projects, such as irrigation improvements or low-consumption fixtures, as well as investments in systems for use recycled water
Research and development into “greener materials,” including those that are bio-based; the use of recyclable materials is also a focus
Projects focused on recycling and materials recovery
There is a lot of hope pinned on returns for these bonds as Apple is probably the highest-profile issuer of Green Bonds to date. Who will be next?