Calvert Impact, Inc. has achieved a significant milestone with its Cut Carbon Note program, surpassing $50 million in capital raised from over 100 investors. This innovative financial product is designed to fund sustainability upgrades for commercial and multifamily buildings, offering both individual and institutional investors a way to contribute to climate action through fixed-income investments. The program's success, underscored by its investment grade ratings from Morningstar DBRS, reflects a growing trend towards environmentally responsible investing.
The latest issuance of the Cut Carbon Note attracted more than 50 new investors, doubling the expected carbon, water, and energy cost savings. Justin Conway, Chief Impact Officer, highlighted the program's expansion and hinted at larger offerings in the future. The diverse investor base, including the David and Lucile Packard Foundation and Federated Insurance, demonstrates the wide appeal of sustainable investment opportunities.
A key component of the Cut Carbon Note's portfolio is the use of the Commercial Property Assessed Clean Energy (C-PACE) tool, with two-thirds of projects now meeting the CIRRUS™ Low Carbon certification. This certification, offered by PACE Equity and verified by the New Buildings Institute, incentivizes lower carbon designs in buildings, leading to significant environmental and financial benefits. The program is projected to save over 172,000 metric tonnes of carbon emissions and generate $54 million in energy cost savings.
The Cut Carbon Note's innovative approach has not gone unnoticed, earning it the 2024 Grunin Prize for Law and Social Entrepreneurship. As Calvert Impact prepares for a third issuance, the program's success signals a shift towards integrating financial strategies with environmental sustainability goals. With an ambitious target of $400 million in capital, the Cut Carbon Note is paving the way for more sustainable building practices and demonstrating the potential of financial instruments to drive meaningful environmental change.
