Calvert Impact, Inc. has achieved a notable milestone with its Cut Carbon Note program, surpassing $50 million in capital raised from a diverse group of over 100 investors. This innovative financial product is designed to fund sustainability upgrades in commercial and multifamily buildings, blending environmental objectives with investment opportunities. The program's success, underscored by its investment grade ratings from Morningstar DBRS, reflects a growing appetite among investors for products that combine financial returns with positive environmental impact.
The second issuance of the Cut Carbon Note has attracted more than 50 new investors, significantly expanding the program's reach and impact. Justin Conway, Chief Impact Officer, highlighted the enthusiasm among new investors, which has more than doubled the expected carbon, water, and energy cost savings. The involvement of prominent organizations such as the David and Lucile Packard Foundation and Federated Insurance demonstrates the program's broad appeal across the investment community.
A cornerstone of the Cut Carbon Note's strategy is the utilization of the Commercial Property Assessed Clean Energy (C-PACE) tool, facilitating sustainability upgrades across the United States. Notably, two-thirds of the projects in the portfolio have achieved the CIRRUS™ Low Carbon certification, a testament to the program's commitment to lower carbon designs in commercial buildings. This approach is projected to save over 172,000 metric tonnes of carbon emissions and 130 million gallons of water, alongside generating more than $54 million in energy cost savings.
The program's innovative model has not only garnered financial success but also recognition, winning the 2024 Grunin Prize for Law and Social Entrepreneurship. As Calvert Impact prepares for a third issuance, the program's ambition to reach $400 million in capital underscores its potential to significantly influence sustainable building practices. The Cut Carbon Note exemplifies how financial instruments can be leveraged to address climate change, offering a blueprint for integrating sustainability into the commercial real estate sector.
For leaders in business and technology, the Cut Carbon Note's trajectory signals a shift towards financial products that prioritize environmental sustainability. Its success illustrates the viability of combining investment strategies with climate action, potentially inspiring similar initiatives across industries. As the built environment remains a major carbon emitter, programs like the Cut Carbon Note are critical in financing the transition to more sustainable and energy-efficient buildings, marking a pivotal moment in the intersection of finance and environmental sustainability.
