Earth Day, on April 22, is an opportune time to examine how United Church Funds (UCF) uses fixed income investments to build a sustainable future. With over $100 million invested in green bonds at the end of 2024, UCF is proud to finance solutions that protect the planet and uplift vulnerable communities.
What are Green Bonds?
Green bonds are a fixed income investment designed to finance environmentally beneficial projects — from renewable energy and clean transportation to climate resilience and ecosystem protection. For UCF, as a faith-based investor, green bonds represent a unique opportunity to align our values with our financial stewardship. Following are some examples from UCF’s green bonds portfolio.
Accelerating Green Energy Adoption: Connecticut Green Bank
UCF has invested over $200,000 in bonds issued by Connecticut Green Bank, the nation’s first green bank. These funds have supported the installation of 4,800 rooftop solar systems, generating more than 39 megawatts of renewable energy credits annually, enough to power about 4,000 homes annually.
In addition, 50% of these projects were deployed in vulnerable communities, and 98% of these projects included energy audits, ensuring social and environmental impact. Learn more here: Residential Solar Investment Program (RSIP) – CT Green Bank.
Accelerating the Shift to EVs: Ford Motor Company
With transportation accounting for nearly 30% of U.S. greenhouse gas emissions, UCF’s $400,000 investment in Ford Motor Company’s green bonds helps to fund the creation of new manufacturing lines for electric vehicles (EVs) and batteries. As the world races toward a clean-energy future, these investments are a step toward reducing emissions at the source while supporting innovation and job creation in the green economy.
Setting the Standard: European Investment Bank (EIB)
As the first-ever green bond issuer in 2007, the European Investment Bank (EIB) has led the way in sustainable finance. UCF holds over $2.5 million in three of the EIB’s green bonds that support projects to reduce emissions across sectors like clean transport and renewable energy.
According to EIB’s 2023 report, these bonds prevented greenhouse gas emissions at the rate of 206 tons per $1 million invested, a clear demonstration of measurable impact. Read more here: CAB Impact Report 2023.
Ensuring Clean Water for Children: World Bank (IBRD)
One of the most inspiring bonds in our portfolio is issued by the World Bank’s International Bank for Reconstruction and Development (IBRD). UCF has invested over $4 million in these bonds, including one that supports clean drinking water access for over 2 million schoolchildren in Vietnam. This investment goes beyond infrastructure; it offers dignity, health and opportunities for the next generation. Watch a video about this project here.
Green Bonds Come in Blue
UCF is also invested in blue bonds, which are a type of sustainable bond specifically designed to finance projects that support the health of oceans, freshwater resources and marine ecosystems. While similar in structure to green bonds, blue bonds are focused on the “blue economy,” referring to economic activities connected to oceans, coasts and water bodies that are sustainable, regenerative and climate resilient. Here is one example of UCF’s investment in blue bonds.
Protecting Biodiversity: Galapagos Blue Bond
The Galapagos Islands, home to at least 2,000 species found nowhere else on Earth, face ongoing threats from illegal fishing and plastic pollution. Fish, along with other aquatic species, are Ecuador’s second-largest export, valued at $8.5 billion as of 2022, with half of that output being tuna exports to Europe. Illegal fishing would put this revenue — a source of hard currency reserves for the country — at risk.
Through the GPS Blue Financing Bond, UCF’s $250,000 investment finances science and economic research to protect marine ecosystems, environmental education projects and sustainable fishing practices, while supporting Ecuador’s efforts to comply with European Union regulations. Learn more about the Galapagos Blue Bond.
Investing Through a Faith Lens
UCF’s investment strategy is grounded in the belief that finance should serve people and the planet. As we celebrate Earth Day, we are mindful that every day should be Earth Day, and that environmental justice is inseparable from economic and social justice. We invite you to join us to create a more just and sustainable world. Click to learn more.
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