Apple is raising a special 7-year "green bond” to be used for environmentally friendly projects. The company often sells bonds quite frequently to help fund operating expenses.
However, this type of green bond is new for the Cupertino, California-based company. It’s part of a package of bonds that seek to raise between $10 and $12 billion, according to the Financial Times.
Green Bonds raise funds for new and existing eligible projects with environmental benefits. The Green Bond Principles (GBP) are voluntary process guidelines intended for broad use by the market that recommend transparency and disclosure, and promote integrity in the development of the Green Bond market. They’re intended to provide the informational basis for the market to increase capital allocation to environmentally beneficial purposes without any single authority or gate keeper.
According to Business Insider, Apple has detailed what makes an individual project eligible for green bond funds. In particular, Apple will spend the funds on projects that meet one or more of these criteria:
- Solar and wind projects and associated energy storage;
- Buildings that meet official "green building" standards, including LEED and BREEAM;
- Environmental upgrades for new buildings, including on-site renewable energy;
- Environmental upgrades for existing buildings, such as water-efficient or heating-efficient fixtures;
- Projects that encourage recycling;
- Projects "and technologies that facilitate the use of greener materials in our products"