Australia’s largest bank is championing the development of sustainable buildings.
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Commonwealth Bank of Australia‘s (ASX: CBA) share price has edged into the green in late afternoon trading, up a slender 0.3%.
The CBA share price has closely mirrored the performance of the S&P/ASX 200 Index (ASX: XJO) today. The index also spent much of the day in the red until clawing back to a small gain at time of writing.
Below we look at CommBank’s latest announcement on the sustainability front.
What green development loans is the bank supporting?
In a media release unlikely to have a material impact on the CBA share price today, CommBank reported it served as the sole financier and “green coordinator” for Charter Hall Group‘s (ASX: CHC) 480 Swan Street development, located in Victoria.
According CommBank, the $202 million construction facility is Australia’s maiden Climate Bond Initiative-certified Green Development Loan.
On completion, Charter Hall’s development will house the headquarters of Australia Post. Construction is being undertaken under carbon-neutral guidelines. The goal is to achieve a 6-star Green Star rating and a 5-star NABERS Energy rating.
The International Energy Agency (IAA) estimates that between construction and operation, buildings across the world account for more than one third of global energy use.
Commenting on the green development loan, CBA’s managing director, real estate and future cities Michael Thorpe said:
Charter Hall’s green construction facility breaks new ground in Australia’s green loan market, an achievement that reflects the high sustainability standards at the core of their design and development process.
Charles Davis, managing director, sustainable finance and ESG at Commonwealth Bank, added, “This new application of the green loan overlay will incentivise more Australian property developers to commit to building new commercial building stock to high environmental standards.”
To secure green development loans, projects need to meet various sustainability benchmarks in both development and operational stages.
CBA share price snapshot
Up 53% over the past full year, the CBA share price has slipped around 0.6% lower over the last month.
CBA’s shares are currently trading for $101.64.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.