Want a term deposit that is certified as being green? UBank has launched the world’s first Green Term Deposit, certified by the Climate Bonds Initiative (CBI).
UBank’s Green Term Deposit is matched to a portfolio of renewable energy projects such as wind and solar power, and low carbon transport and buildings. UBank is part of NAB, and when a customer invests funds in a UBank Green TD, NAB will hold at least an equal amount in a pool of lending for projects and assets eligible for certification under the Climate Bonds Standard.
“The Climate Bonds Initiative (CBI) is an international not-for-profit organisation and the only one in the world working solely on mobilising the $100 trillion market for sustainable finance to help address climate change,” says Glen Aiton, chief product innovation officer at UBank. “Pursuing the certification was important to us in order to give customers transparency. CBI will essentially conduct a third party audit and validate the funds are being distributed accordingly.”
The UBank Green Term Deposit is available to all customers with a minimum $1,000 balance. It is available at 2, 5, 7, 8, 10 or 11-month maturity for both personal and self-managed super fund term deposits.
“This is really a test and learn for us,” Glen says. “We’ve seen the research showing a huge amount of customer interest in this space, particularly from the millennial audience, and we’re excited to see how customers respond. We want to empower customers to make sustainable lifestyle choices and be more aware of where their funds are being invested, while still enjoying a competitive return on their savings.
The launch follows new research showing 74% of Australians consider themselves eco-friendly and try to adopt sustainable practices, including buying green products. For millennials (aged 18-34 years), nearly 55% are actively looking to incorporate sustainable products in their daily lives.
The research notes that up to a third of millennials are concerned about complexity when it comes to researching, signing up for and maintaining their green investments – suggesting convenience and transparency is a priority.
This is UBank’s first green product, but “it’s certainly something we may look at pending the feedback to this product,” Glen says.