Own CBA shares? Here’s the bank’s latest green initiative

Green credentials are increasingly important in the construction sector.

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Commonwealth Bank of Australia (ASX: CBA) shares have rebounded from a small loss earlier in the day. CBA shares closed up 0.95% at $106.10 per share.

The S&P/ASX 200 Index (ASX: XJO), meanwhile, tracked the other way, giving back early day gains to close almost flat (up 0.07%).

That’s today’s price action.

Now here’s the latest on the big bank’s green initiatives.

Australia’s first build-to-rent green loan

According to a release from CommBank, it’s just signed Australia’s first build-to-rent green loan together with Oxford Properties Group.

The $130 million green loan will support the construction of Oxford’s Indi Sydney City development. The high rise will be the capital city’s first build-to-rent development and count among Australia’s most sustainable towers.

Among the innovative design features intended to make the building carbon neutral are regenerative lifts. These will channel the heat generated by elevators into reusable energy, offering a 20% to 25% increase in elevator energy efficiency.

Commenting on the green development loan, CBA’s group executive of institutional banking and markets, Andrew Hinchliff, said:

As our nation grows and evolves, the way Australians live, work and play is changing and people will be seeking new, more flexible modes of living that can put them closer to their jobs. Build-to-rent properties will play a key part in Australia’s future, and we’re very proud to have been able to help Oxford break new ground with this sustainable development.

CBA’s managing director, future cities and networks, Michael Thorpe, added:

We’re excited to bring the first premium built-to-rent offering to the Sydney residential rental market, and one that’s earned Green Loan certification through its strong sustainability credentials and a commitment to drive positive environmental outcomes.

How have CBA shares been performing?

CBA shares have gained 29% so far in 2021, easily outpacing the 13% year-to-date gains posted by the ASX 200.

Over the last month, the CBA share price is up 4.33%.

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