Investing in a Low-Carbon Future
One of the roles we play as a financial institution in the transition toward a low-carbon future is to invest alongside our clients in helping to scale up clean technology and other environmentally beneficial projects.
In 2012, we extended our long standing commitment by establishing a $40 billion target to finance and invest in companies that promote clean technology alternatives over the next decade. Since the inception of our Environmental Policy Framework in November 2005, we have co-invested more than $4 billion in clean energy and environmentally beneficial projects.
These investments have provided the necessary funding that emerging industries need to achieve the economies of scale that will help them become more cost-competitive. Our portfolio consists of companies and projects in the areas of wind, solar, cellulosic ethanol and geothermal energy. We also have investments in energy efficiency technologies, sustainable real estate development and companies that focus on market infrastructure development.
In India, ReNew Power has continued to expand its production of wind power. We are the lead investor in ReNew Power through an equity investment made through our Merchant Banking Division. The company has almost 100 megawatts of installed wind power generation and is planning to significantly increase capacity. Additionally, in 2013 ReNew Power will be supplying one of our Bangalore offices with renewable energy. The partnership showcases our continued commitment to growing the renewable energy sector in India, both as an investor and as a credit worthy user of clean energy in support of our own 2020 carbon neutrality goal.
In addition to our clean energy investments, the Urban Investment Group (UIG) has committed nearly $2.8 billion in capital to help revitalize inner cities through financing projects that bring needed housing, jobs, education, healthcare and other services to underserved and emerging communities. UIG has increasingly focused on green initiatives to facilitate lower energy costs and more sustainable and vibrant neighborhoods.