Adrian Barnes, Green Investment Bank: Investing in the Green Economy: GIB's approach to ensuring positive green impact.

1. Investing in the green economy:
GIB’s approach to ensuring positive
green impact
15th September 2014

2. WHO WE ARE
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3. OUR MANDATE
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To accelerate the UK’s transition to a greener economy and to create an enduring
institution independent of Government.

4. 4
We have committed £1.3bn of capital to 31 projects, mobilising a total of £4.6bn
We have invested in every
part of the UK, in all of our
sectors and using all our
financial products
WE ARE INVESTING
We have backed 5 local
authority, 3 commercial and 2
anaerobic digestion waste
projects
Our investments will save 1.3
million tonnes of waste from
landfill
We have backed large and
small projects; from a
CapEx of £2m
to £1bn
We are building a market in
energy efficiency, including
streetlight conversion and 4
NHS projects
We’ve invested £623m
in 5 offshore wind
projects, including
construction equity
Our investments will produce
enough renewable electricity
to meet energy needs of 3.0
million homes
We have set up 5 funds,
with £250m, to back
small projects
Our investments will cut CO2
emissions equivalent to
taking 1.6 million
cars off the road

5. INTEGRATING GREEN IN OUR INVESTMENT PROCESS
We have developed a framework to mainstream green investment.
Our ‘Green Investment Principles’ are an integral part of our investment process
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Principle 1
Principle 2
Principle 3
Principle 4
Principle 5
Principle 6
Principle 7
Positive contribution to a recognised green purpose
Reduction of global greenhouse gas emissions
Enduring green impact
Clear and firm investment criteria
Robust green impact evaluation
Effective covenants, monitoring and engagement
Transparent reporting
Implemented through our Green and Responsible
Investment Policies
Green
Investment
Principles

6. ASSESS, MONITOR, REPORT
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We ensure ‘green impact’ throughout the project lifecycle. To achieve that we have
committed to market leading green assessment, monitoring and reporting practices..
ASSESS MONITOR REPORT
• Every investment must make a
meaningful contribution to one or
more green purposes before being
considered
• ‘Green Impact’ is quantified where
practicable
• Each stage of the pre-approval
process requires green
compliance “sign-off”
• All approved investments include
covenants relating to green
performance and penalties for non-compliance
• All investment recipients are
required to submit an annual green
report of performance
• We forecast the green impact of
every investment with its
announcement
• We report annually on our green
impact against each of our five
green purposes, for the reporting
period and the projected lifetime
impact
We are also committed to continuous improvement and open engagement
Adoption of best practice: Equator Principles & United Nations Principles for Responsible Investment.

7. MAXIMISING GREEN IMPACT
Our investment strategy targets maximum green impact. We define green impact through five
measures – our green purposes:
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Reduce greenhouse
gas emissions
Increase natural
resource
efficiency
Protect the natural
environment
Enhance
biodiversity
Promote
environmental
sustainability
Example Measure
Offshore wind to replace
fossil fuel power
generation
Waste recycling facility
Diverting waste from
landfill through energy
from waste plants
Developing sustainable
biomass procurement
Create a positive
demonstration effect in
the market that mobilises
others
• GHG avoided (t CO2e)
• Materials consumption
avoided (tonnes material)
• Renewable electricity
generated (GWh)
• Waste to landfill avoided
(tonnes material)
• Various e.g. % biomass
from sustainable
forestry management
• Capital mobilised (£)

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confidential basis solely for information purposes only. No reliance can be placed on this Document by any recipient or any other person. This Document and its contents are confidential to
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For further information visit: www.greeninvestmentbank.com/green-impact