Brief: Apple to issue $1b ‘green bond’ after Trump’s withdrawal from Paris accord

Apple’s Tim Cook was among several US tech CEOs to criticize the US government’s withdrawal from the Paris Agreement. Photo credit: Justin Sullivan via Getty Images

The news:

• Apple is issuing its second climate bond – or “green bond” – to raise US$1 billion finance for its clean energy and environmental projects.
• The company’s first green bond – which, at US$1.5 billion, was the largest yet issued by a US company – was offered in response to the 2015 Paris Agreement, which saw 195 countries sign an accord to reduce and mitigate greenhouse gas emissions.

Why it matters:

• US president Donald Trump announced earlier this month that the US would withdraw from the agreement, making it one of just three United Nations member states not to participate (the others being Nicaragua and Syria).
• Trump’s announcement garnered widespread criticism from tech industry leaders. Tesla CEO Elon Musk quit his seat on a presidential advisory council over the proposed withdrawal.
• Apple’s new US$1 billion green bond is the first to be issued since Trump’s announcement. The company said the new bond is meant to show that businesses are still committed to the Paris Agreement – even if the US government is not.

Source: Reuters.