Verizon is fulfilling its promise to better the environment. Keeping true to its commitment to corporate responsibility, the telecommunications company has allocated $1 billion to spend on programs that have a positive impact on the environment.
Last year, Verizon committed to convert 50 percent of its energy consumption to renewable sources over the next six years. To that end, Verizon borrowed $1 billion worth of funds from green bonds to pay for projects that invest in renewable energy sources at its production facilities. This includes hydrogen fuel cells, solar technology and wind farms.
“This is now a real game changer,” Verizon’s chief sustainability officer Jim Gown explained. “The whole goal of this new bond was to focus on a new, unique funding source.”
Verizon would not have been able to fulfill its promise of renewable energy without the new bonds. According to Fortune, the bonds were a major success because more people were purchasing the low-cost bonds than they had to sell, which resulted in a low borrowing rate. The company did not reveal how low the rate sank.
Green bonds have become a popular way to fund environmental projects over the past five years. Last year, these types of bonds raised more than $167 billion across the world, and experts believe that number could reach as high as $200 billion in 2019.
Verizon is on a growing list of companies that are using green bonds to fulfill their promise of corporate responsibility. Apple, for example, previously borrowed $2.5 billion to fund projects, while Telefónica, a cell phone company based out of Spain, took out $1.1 billion this year.
Along with funding renewable energy projects, Verizon plans to use the bonds to increase efficiency in its facilities. Most of the $1 billion the company borrowed will be used to better the environment, but some of it will go toward installing LED lighting and smart sensors to reduce energy use when employees are gone.
The company is taking its commitment to corporate responsibility a step further by also spending money on its reforestation program, which seeks to plant new trees in Miami and Puerto Rico, areas that have recently been devastated by hurricanes.
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