CBA (ASX:CBA) share price edging higher as bank supports green loans

Australia's largest bank is championing the development of sustainable buildings.

Bernd Struben

Author bio Bernd Struben earned his BA in economics from the University of Michigan in 1991, with post-graduate studies in environmental economics at the University of Connecticut. Over the years he’s written about and analysed the tourism industry in the Caribbean; Europe’s commercial real estate markets; and, since moving to Australia in 2010, global and Aussie share markets. Bernd studies geopolitical and macroeconomic trends, alongside sector and company specific data, to gauge what he believes could be tomorrow's best investments. In his free time, you might find Bernd at the beach with his family or working on his next science fiction novel. Areas of expertise Australian and global share markets Macroeconomic and geopolitical trends Real estate Education Economics, University of Michigan Favorite investment quote "The four most dangerous words in investing are: 'This time it's different." — Sir John Templeton

Published September 14, 2021 3:26 pm AEST

Commonwealth Bank of Australia's (ASX: CBA) share price has edged into the green in late afternoon trading, up a slender 0.3%.

The CBA share price has closely mirrored the performance of the S&P/ASX 200 Index (ASX: XJO) today. The index also spent much of the day in the red until clawing back to a small gain at time of writing.

Below we look at CommBank's latest announcement on the sustainability front.

A wide-smiling businessman in suit and tie rips open his shirt to reveal a green t-shirt underneath. — Image source: Getty Images

What green development loans is the bank supporting?

In a media release unlikely to have a material impact on the CBA share price today, CommBank reported it served as the sole financier and "green coordinator" for Charter Hall Group's (ASX: CHC) 480 Swan Street development, located in Victoria.

According CommBank, the $202 million construction facility is Australia's maiden Climate Bond Initiative-certified Green Development Loan.

On completion, Charter Hall's development will house the headquarters of Australia Post. Construction is being undertaken under carbon-neutral guidelines. The goal is to achieve a 6-star Green Star rating and a 5-star NABERS Energy rating.

The International Energy Agency (IAA) estimates that between construction and operation, buildings across the world account for more than one third of global energy use.

Commenting on the green development loan, CBA's managing director, real estate and future cities Michael Thorpe said:

Charter Hall's green construction facility breaks new ground in Australia's green loan market, an achievement that reflects the high sustainability standards at the core of their design and development process.

Charles Davis, managing director, sustainable finance and ESG at Commonwealth Bank, added, "This new application of the green loan overlay will incentivise more Australian property developers to commit to building new commercial building stock to high environmental standards."

To secure green development loans, projects need to meet various sustainability benchmarks in both development and operational stages.

CBA share price snapshot

Up 53% over the past full year, the CBA share price has slipped around 0.6% lower over the last month.

CBA's shares are currently trading for $101.64.

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