Stanford completes spending of first-ever climate bonds
In 2021, Stanford became the first university to issue climate bonds with sustainability and social equity designations for funding campus construction innovation and other environmentally focused projects. The school sold $375 million in environmental, social, and governance (ESG) public market debt securities, meeting the ESG requirements of the International Capital Markets Association’s Sustainability Bond designation and the Climate Bond Certification. To ensure that the projects qualified for the specific standards of a climate bond, the university also enlisted external financial consultant Kestrel Verifiers to conduct an independent review.
As of today, these climate bonds are fully spent, and Kestrel recently completed a follow-up report to certify that the finances were correctly used for the planned projects and other appropriate developments. The construction projects funded include work on the Middle Plaza, the Center for Academic Medicine, Bonair Replacement Building, Escondido Village Graduate Residences, Neuro/ChEM-H research complex, and the BioMedical Innovation Building 1. The renovations feature new technology such as automated lighting and HVAC controls, recycled air ventilation, and heating and cooling air recovery systems to maximize energy efficiency and improve sustainable building management. Additionally, these projects improve health equity and housing access for the campus community in accordance with the university’s social responsibility goals.
This funding has allowed for the broader development and expansion of the Stanford Doerr School of Sustainability and has supported the advancement of various campus sustainability initiatives. Additionally, these bonds have contributed to affordable on- and off-campus housing, increased healthcare access for marginalized communities in the area, and improved opportunities for medical students and healthcare workers of diverse backgrounds.
The successful implementation of these climate bonds marks an important step towards the university’s long-term environmental commitments including net-zero emissions and zero-waste buildings, and represents a first for U.S. higher education in the field of sustainability.
