4. Why is Flanders issuing a Sustainability Bond
By the issuance of a Sustainability Bond Flanders intends to reach the following main targets:
- Support Flanders’ sustainability strategy and channel financing for Flanders expenditures directly related to the following pillars that have priority in terms of investments in the coming years: circular economy, smart living, lifelong learning and energy.
- Create a tighter link with socially responsible investors (SRI) on a global basis, by giving such investors the possibility to flag their investments for Green and Social Projects. SRI assets under management are growing and large portfolios are now managed with considerations for Environmental, Social and Governance (ESG) aspects. The final objective of Flanders on this front is therefore to diversify its investor base.
- Support the development of the green bond market in Belgium, and contribute to the development of liquid and efficient Sustainability Bond market which should facilitate the financing of sustainable development.