Eliminating 230,000 tons of plastic pollution from nature in selected areas of Africa and Asia
Over the past year, Velliv has increased focus on so-called 'impact' investments, including sustainability bonds that make a difference for society and the environment while at the same time providing an attractive return as a pension customer.
One of the latest investments is 'Plastic Waste Reduction' bonds, establishing new infrastructure for collecting and recycling plastic waste from nature in Accra, Ghana, and Surabaya, Indonesia. The bonds are issued by the World Bank, and with an investment of DKK 240 million out of the total investment of approximately DKK 690 million, Velliv is the largest key investor.
Over the next seven years, the new infrastructure will have the capacity to dispose of 230,000 tons of plastic waste from nature in poor areas where the problem of plastic pollution is most pronounced. Of this, 177,000 tons of plastic will be recycled into new material of food-approved quality.
Empowering communities
The renovation infrastructure is also expected to create employment for 1,591 informal 'waste pickers', who are paid for collecting plastic and thus have the opportunity to provide for their families. Approximately 80% of these informal waste pickers are women. Part of the funding also has the purpose of creating a social welfare program for employees and waste pickers. The aim is to ensure health care, decent working and pay conditions and schooling for the employees' children.
The objectives of the obligation are regularly monitored via an independent third party, the non-profit organisation Verra, who drives standards within environmental and social markets, including the world’s leading greenhouse gas (GHG) crediting program, Verified Carbon Standard (VCS) Program.
While the investments make a big difference locally, they also make a difference to your return. The sustainability bonds from the World Bank have been designed so that they, in addition to contributing to sustainable development, also have a solid risk and return profile. The latter is a prerequisite for us to invest in such projects – our main purpose is to make sure you get the best possible return on your pension savings.