Australia Post Raises $100M for Sustainability

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by KnowESG
KnowESG_Australia Post
Image courtesy of Australia Post

Australia Post has announced the successful pricing of its inaugural sustainability bond, which prioritises environmental and social initiatives. The 6-year bond, valued at $100 million, was priced on May 15, 2023, and received overwhelming demand from investors in Australia and Asia.

The proceeds from the bond issuance carried out through an Australian Medium-Term Note (AMTN) programme will support Australia Post in implementing its 2025 Sustainability Roadmap and community strategy.

Australia Post, as the first Commonwealth Government Business Enterprise, aims to achieve Net Zero emissions by 2050. The organisation has also made additional commitments in its 2025 Sustainability Roadmap, which includes efforts to align with the United Nations Sustainability Development Goals.

Since 2019, Australia Post has prioritised its community strategy, providing support for key social issues in Australia, such as mental health, Indigenous children's literacy, and disaster assistance.

Rodney Boys, the Group Chief Financial Officer of Australia Post, emphasised that this significant transaction reinforces the organisation's enduring dedication to decarbonisation and renewable energy. It also underscores how Australia Post's core values revolve around community service and social impact.

Australia Post, being one of the oldest and most well-established businesses in the country, takes immense pride in its inaugural sustainability bond, which stands out as one of the early examples of a green and social sustainability bond issued by an Australian corporate entity.

This bond issuance, executed in accordance with Australia Post's newly established Sustainable Finance Framework, serves as a testament to the organisation's dedication to building a more sustainable network and providing support to community organisations throughout Australia. Mr. Boys expressed this commitment, highlighting the significance of the bond in aligning Australia Post's operations with sustainability goals and fostering positive social impact.

Australia Post is actively implementing a comprehensive array of initiatives aimed at fostering a sustainable future for the benefit of all Australians. These initiatives include:

  • Setting the target of achieving Net Zero carbon emissions by 2050.

  • Working towards a 15% reduction in scope 1, 2, and 3 emissions by 2025, using the FY19 baseline as a reference.

  • Transitioning to 100% renewable electricity sourcing by 2025.

  • Ensuring a fully sustainable packaging range that aligns with the 2025 National Packaging Targets.

  • Striving for a 20% reduction in waste sent to landfills by 2025, using the FY19 baseline as a reference.

  • Demonstrating commitments through various initiatives, including Australia Post's Reconciliation Action Plan, Accessibility and Inclusion Plan, and safety agenda.

  • Supporting social enterprise and Indigenous suppliers by aiming to spend $100 million with them by 2025.

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Source: Australia Post


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