Green Financing

The HOCHBAHN Green Bond – for a sustainable Hamburg

The ambitious goal of HOCHBAHN is to achieve 100 percent climate-neutral mobility by 2030. We are well aware, after all, of our role as a key partner in Hamburg’s public transport plan, known as “Hamburg-Takt”, as well as when it comes to adhering to the city’s climate targets. This shift in mobility will only succeed with the help of an expansion of the range of metro and bus services, and the integration of on-demand and sharing services in local public transport.

The issuance of the HOCHBAHN Green Bond is therefore a central aspect when it comes to financing these projects. Thanks to its green business model, HOCHBAHN is in a position to offer potential investors opportunities to invest in a sustainable financial product.

 

Examples of green financing

The net proceeds from the Green Bond will be invested in the following projects, among others:
 

Conversion to a purely emission-free bus fleet

Modernisation of the existing metro network

New services for our customers

More sustainable projects that fall within the framework for Green Bonds

 

By implementing such projects, we aim to maintain the high quality of life that the growing city of Hamburg offers, and safeguard it for future generations. We have three strategic goals in mind here:

Increase in market share of integrated public transport to 30% by 2030 (2018: 22%)

This is equivalent to 50 percent more passengers switching from their own private car to integrated public transport

Acting in a 100 percent climate-neutral way – the aim is to reduce our CO2 footprint to zero by 2030

 

The Green Bond Principles of the International Capital Market Association (ICMA) provide the framework for the issuing of Green Bonds in the form of voluntary, officially recognised process guidelines relating to transparency, disclosure and reporting by issuers to investors. The establishment of a Green Bond Framework in accordance with the Green Bond Principles ensures that a clear procedure is in place for a credible issuance of Green Bonds. HOCHBAHN’s Green Bond Framework is focused on the category “Clean Transportation” and thus on the measures outlined in the city’s public transport plan “Hamburg-Takt”. The framework complies with the Green Bond Principles, as well as taking into account the 17 Sustainable Development Goals (SDGs) of the United Nations and the EU taxonomy for classifying environmentally sound economic activities.

 

In order to present the quality of the Green Bond in a transparent manner, current market standards require a qualified, independent, second-party opinion, which then certifies the Green Bond Framework accordingly. HOCHBAHN has commissioned CICERO Shades of Green, a leading provider of independent, science-based assessments (“second opinions”) of Green Bonds, to review the Green Bond Framework. The second option of CICERO Shades of Green confirms compliance with ICMA principles and rates HOCHBAHN’s Green Bond Framework with the highest rating of “Dark Green”. In addition to the Green Bond Framework, CICERO Shades of Green also awarded the highest rating of “Excellent” to the sustainability of HOCHBAHN’s governance structure.

 

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