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Kreditanstalt für Wiederaufbau (KfW) case study

What is it?

KfW1 is a German development bank, which aims to promote sustainable economic, social and environmental development both within Germany and worldwide. Through its financing, the development bank aims to support projects and initiatives that contribute to economic growth, job creation, and social welfare, while also addressing environmental challenges and fostering sustainability.


Examples of projects financed by KfW’s green bond aim to mitigate climate change by financing the construction of new energy-efficient buildings, alongside improving the energy efficiency of existing residential, commercial, and municipal buildings.

Why do we own it?

The proceeds of this particular issuance have been used to finance the construction of 42 energy-efficient apartments in the Hamburg Metropolitan area. These buildings produce more energy than they use, pioneering innovative technologies which could be rolled out to future housing developments. This project was the winner of the “KfW Construction Award 2020” in the category “New building”; in our opinion, the project is aligned with our Resource Efficiency impact theme as well as UN SDGs 7, 9 and 11, fitting our impact thesis while, as a highquality security, also offering liquidity and potentially attractive financial returns.


As one of the world’s largest financiers of climate action and environmental protection, we believe KfW is in a unique position to tackle climate change, backed by the German government which has set an ambitious goal of increasing the share of renewable energy in its electricity mix to 65% by 2030. Through financing renewable energy and energy efficiency projects, KfW is facilitating the accelerated expansion of renewable electricity and energy-efficient buildings primarily in Germany, as well as surrounding European countries, delivering progress towards its goal of achieving net zero by 2050. 

Key points for KfW

  • Supporting job creation, social welfare and environmental solutions in Germany and worldwide.
  • In 2022, the projects financed by this specific green bond contributed to the avoidance of 1.9 million tons of greenhouse gas emissions.2
  • In our view, the labelled bond framework of KfW, which aligns with the ICMA Green Bond Principles, is robust.