Australia Post has priced its first-ever sustainability bond (US$66.3m), focused on both environmental and social projects. The six-year bond was priced at A$100m on May 15, 2023, and was oversubscribed with orders from Australian and Asian investors.
Issued under an Australian Medium-Term Note (AMTN) program, the funds raised will be used to assist Australia Post in delivering on its 2025 Sustainability Roadmap and community strategy. Australia Post’s range of initiatives to deliver a sustainable future for all Australians includes: targeting net zero carbon emissions by 2050; reducing scope 1, 2 and 3 emissions by 15% by 2025 (FY 2019 baseline); sourcing 100% renewable electricity by 2025; 100% fully sustainable packaging range aligned to the 2025 National Packaging Targets by 2025; decreasing waste to landfill by 20% by 2025 (FY 2019 baseline); commitments across Australia Post’s Reconciliation Action Plan, Accessibility and Inclusion Plan and through its safety agenda; and spending A$100m (US$66.3m) with social enterprise and Indigenous suppliers by 2025.
Supported by NAB and Westpac as joint lead managers and joint sustainability coordinators, this issuance follows the establishment of Australia Post’s sustainable finance framework. Australia Post’s sustainability bond is aligned to ICMA’s green bond principles, social bond principles and sustainability bond guidelines. According to the post, Australia Post is the first Commonwealth Government Business Enterprise to target net zero emissions by 2050, with further commitments laid out in its 2025 Sustainability Roadmap, including working to meet the United Nations Sustainability Development Goals.
Rodney Boys, chief financial officer at Australia Post Group, said, “The landmark transaction further demonstrates Australia Post’s long-term commitment to decarbonization and renewable energy and highlights how community service and social purpose is at the center of what Australia Post does. 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 bonds issued by an Australian corporate in recent years. Delivered under Australia Post’s newly established Sustainable Finance Framework, this demonstrates our commitment to create a more sustainable network and support community organizations across Australia.”
Read more key sustainability updates from the parcel and postal technology industry, here.