As part of its continuing move towards sustainability, Australia Post has successfully issued its first-ever sustainability bond. Targeting both environmental and social projects, the $100 million six year bond was considerably oversubscribed with orders from Australian and Asian investors.
The funds will help implement Australia Post’s 2025 Sustainability Roadmap and its community strategy. Australia Post is the first Commonwealth Government Business Enterprise to commit to Net Zero emissions by 2050, and their Sustainability Roadmap outlines commitments to help achieve the SDGs.
Australia Post’s community strategy, in effect since 2019, is centred on addressing Australian-based social issues spanning mental health, Indigenous children’s literacy, and disaster support.
“As one of the oldest and most established businesses in Australia, we’re immensely proud that our inaugural sustainability bond is one of the first combined green and social sustainability bond issued by an Australian corporate in recent years.” says Rodney Boys, Group Chief Financial Officer.
“Delivered under Australia Post’s newly established Sustainable Finance Framework, this demonstrates our commitment to create a more sustainable network and support community organisations across Australia.”
Australia Post aims to cut down scope 1, 2, and 3 emissions by 15% by 2025 (using FY19 as the baseline), sourcing 100% renewable electricity by 2025, and reducing waste to landfill by 20% by 2025 (FY19 baseline). Additional commitments include spending $100 million with social enterprise and Indigenous suppliers by 2025 and supporting Australia Post’s Reconciliation Action Plan, Accessibility and Inclusion Plan, and safety agenda.
This issuance was conducted under the Australian Medium-Term Note (AMTN) program,
It was made possible by NAB and Westpac, who served as Joint Lead Managers and Joint Sustainability Coordinators, and it follows the establishment of Australia Post’s Sustainable Finance Framework. The Sustainability Bond issued by Australia Post aligns with ICMA’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines.