PGGM’s Post

For years, the carbon market debate has focused mostly on supply: project quality, methodologies, and verification. But markets do not scale on supply alone. The bigger challenge now is demand. Many corporate buyers are stepping back because of litigation risk and greenwashing concerns. That silence weakens demand signals, limits price discovery, and slows the flow of climate finance. In our latest piece for the Centre for Social and Economic Progress #CSEP, #sumiranshipli and I explore why the future of carbon markets depends on bringing buyers back in—with clearer rules, safer claims, broader participation, and stronger links between voluntary and compliance markets. https://lnkd.in/eCQCyTiB #LCAW #ClimateAction #CarbonMarkets #NatureFinance #WEF #TNC #IMF #WorldBank #GEF #CPI #ClimateFinance #BlendedFinance #T50Capital

Pleased to have worked with Dr. A Prasad on our latest blog at Centre for Social and Economic Progress. We explore why the next phase of carbon market development will depend as much on demand-side confidence as on supply-side integrity. Looking forward to the discussion.

Blue bonds: where return meets impact 🌊 I was pleased to share PGGM’s perspective on blue bonds with Environmental Finance (link in comments). As part of our 3D investment philosophy, balancing return, risk and sustainability, we see blue bonds as an attractive way to combine financial performance with measurable environmental impact. A recent example is our €15.6 million investment, made through T. Rowe Price, in the inaugural blue bond of SABESP, Brazil’s largest water and sanitation company. The bond supports investments that improve water infrastructure, reduce pollution, and contribute to healthier marine ecosystems and communities. Three key takeaways: 🔹 Impact and returns can go hand in hand: blue bonds offer both environmental impact and attractive investment opportunities. 🔹 Biodiversity is becoming a key investment theme: blue bonds provide a tangible way to contribute to nature and biodiversity objectives. 🔹 Partnerships matter: close collaboration with specialist asset managers such as T. Rowe Price helps identify innovative opportunities and support market development. As long-term investors, we believe blue bonds can play an increasingly important role in financing the transition to more sustainable water and ocean economies. #BlueBonds #ImpactInvesting #SustainableFinance #Biodiversity #NatureFinance #PGGM #FixedIncome #ESG #3DInvesting

How are corporate buyers building carbon credit portfolios resilient enough to withstand growing scrutiny, while still delivering on long-term climate goals? Last week during London Climate Action Week, we sat down with corporate carbon credit buyers for a closed-door roundtable and got an unfiltered look at how procurement decisions get made internally, how quality and credibility are evaluated, and how organisations are planning for future supply. In our upcoming webinar on Tuesday 14 July at 14:00 BST, we dive further into the key themes that emerged from the roundtable with our expert panel: ▪️Henning Huenteler - Partner at Bain & Company ▪️Christina Elvers - Strategy Manager of Environmental Products Trading at Shell  ▪️Tommy Ricketts - CEO and Co-founder at BeZero Carbon 👉 You can find more details and register here: https://hubs.li/Q04nlQmL0 #CarbonMarkets #LCAW

If your sourcing decisions don't yet account for carbon costs, you're working with incomplete numbers. CBAM import levies. EU ETS exposure. Scope 3 liabilities. These aren't future risks — they're already sitting inside your supplier base, quietly compressing margins. Tuesday, July 14 — JAGGAER and carbmee break down how AI-powered procurement makes carbon data actionable: not just for ESG reports, but in the actual decisions that drive cost. 📅 July 14 | 4:00–5:00 PM CET Speakers: Michael Roesch (JAGGAER) and Robin Spickers Speaker (carbmee) 👉 Register here: https://okt.to/f9W4ka

LAPFF’s Quarterly Engagement Report (Apr–Jun 2026) is now available. In Q2, LAPFF continued to drive investor engagement on some of the most pressing sustainability and governance issues, including: ⛽ Oil & Gas: Engagement with BP on capital discipline and shareholder rights, including support for a transparency resolution that received 28%+ shareholder backing. 🌱 Biomass: Continued scrutiny of Drax’s biomass strategy, supply-chain controls and reliance on BECCS, alongside engagement with its Senior Independent Director. 🏦 Climate Rollbacks: Engagement with HSBC and NatWest following weakened climate-financing policies, supported by votes to strengthen board accountability. 🌾 Climate Adaptation: Work with Tesco and investors on physical climate risk, food-system resilience and stronger UK supply chains. 🔗 Modern Slavery: Engagement with PMI, Salesforce and Amgen to encourage stronger supply-chain due diligence, remedy and disclosure. ⛏️ Mining & Human Rights: Continued dialogue with Vale and stakeholders on tailings safety, community impacts and climate adaptation. ⚖️ Conflict-Affected & High-Risk Areas: Ongoing assessment of company responses, AGM engagement and escalation where human rights due diligence and board oversight fell short. 📖 Read the full report to learn more about LAPFF’s engagement activity during the quarter. https://lnkd.in/e8YXZF8N

What are corporate carbon credit buyers discussing behind closed doors? During London Climate Action Week, a group of sustainability and carbon strategy leaders came together for a candid discussion on a challenge many organisations are facing: how to build carbon credit portfolios that can withstand increasing scrutiny while supporting long-term climate goals. The discussion explored topics that went beyond project selection, including how procurement decisions are made internally, how quality and credibility are evaluated, and how organisations think about future supply. 🎙️Join our upcoming webinar on 14 July, 14:00 BST | 13:00 GMT where Christina Elvers, Strategy Manager of Environmental Products Trading at Shell, Henning Huenteler, Partner at Bain & Company and Tommy Ricketts, CEO at BeZero Carbon unpack key themes from these discussions, including: • How carbon procurement decisions are navigated within organisations • What a credible and resilient portfolio looks like in today's market • How leading buyers are evolving beyond spot purchasing towards longer-term supply strategies 👉 Register here: https://lnkd.in/evuJY6R2 #CarbonMarkets #CarbonCredits *In 2025, 80.85% of Shell’s global investments included oil & gas, 9.58% included low-carbon energy solutions and 9.58% non-energy products. Shell’s target is to become a net-zero emissions (NZE) energy business by 2050. Disclaimers, including NZE target: https://lnkd.in/ekXge2tC

Want to know what corporate buyers of Voluntary Carbon Credits are really thinking? Join us for a webinar with Bain & Company and BeZero Carbon to discuss what a credible and resilient carbon credit portfolio looks like; how organisations are navigating carbon procurement decisions; and how leading buyers are looking at long-term supply strategies.

Blue bonds may still be a niche market, but they're gaining momentum. In this week's EMEA Primary Market Review, Sustainable Fitch highlights the debut green-blue bond issuance from Acea SpA, a transaction that brings water resilience and climate adaptation further into focus for sustainable debt investors. Key highlights: ▪️Acea's inaugural EUR500 million green-blue bond supports investments aimed at improving water-system resilience and reducing water leakages. ▪️Blue bonds now account for close to 1% of total green bond issuance by value in 2026 — the highest share on record. ▪️The transaction underscores growing investor interest in resilience and adaptation financing within sustainable debt markets. Discover the latest trends and insights shaping the EMEA labelled bond market :https://gag.gl/GDPcIo #SustainableFinance #BlueBonds #ClimateAdaptation #WaterResilience #GreenBonds #ESG #FixedIncome #PrimaryMarketReview #SustainableFitch