Commercial, Finance  -  August 16, 2021

Alphabet Allocates $3 Billion from Sustainability Bond

Google parent company Alphabet allocated $3.47 billion from the proceeds of a portfolio of sustainability bonds issued last year and announced a new target for Google to run on carbon-free energy 24/7, 365 days a year by 2030.

The company first issued $5.75 billion in sustainability bonds in August 2020. Now, 61% of the proceeds have been allocated to fund new and ongoing environmental and social projects. The impact of the projects that the bonds funded is expected to include:

• 14.9 million tons of carbon emissions will be avoided following the execution of 42 new renewable energy PPAs with a combined capacity of 4.4 GW ($1.28 billion allocated)
• 415,000 square meters of LEED platinum-certified office space ($1.25 billion allocated)
• Significantly improved energy efficiency at its Belgium and Finland data center campuses ($640 million allocated)
• 3,600 EV charging ports installed ($15 million allocated)

These projects all support Google’s ambition to accelerate the transition to a carbon-free economy. 

The bonds were issued with the intention of funding projects related to the construction and operation of energy-efficient buildings and developing clean energy sources and EV infrastructure, in addition to a variety of circular economy and social projects. Projects selected to receive funding had to align with Alphabet’s five-year sustainability strategy and represent significant environmental impact.

The company plans to allocate the unused portion of the bond proceeds over the next few years.

“Our Sustainability Bond helps us operate our business in an environmentally and socially responsible way,” the company writes in its newly released impact report. “Our ultimate goal is to enable everyone—businesses, policymakers, and consumers—to create and live in a more sustainable world. We remain optimistic about our collective ability to come together and chart a more sustainable path forward.”

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