ZURICH -- Zurich Insurance Group said on Monday it would invest up to $1.0 billion in projects to reduce the effects of climate change, marking the world's biggest investment in so-called green bonds.
The Swiss insurance giant said it planned to invest in green bonds issued by the World Bank, the International Finance Corporation and other development institutions in a bid to become the "largest global green bonds investor."
Such bonds help fund projects around the world aimed at mitigating the effects of climate change and helping communities adapt to the impact of a changing climate, explained Doris Herrera-Pol, who heads the World Bank's Capital Markets division.
"As a global insurer with a fast growing footprint in many emerging markets, the group is directly exposed to the challenges related to potential effects of climate change or the intensive use of scarce natural resources," Zurich said, explaining the investment choice.
U.S. investment goliath BlackRock had been selected to select, buy and sell the green bonds for the portfolio.
Copyright Agence France-Presse, 2013