The Public Sector Pension Investment Board is publishing a green bond framework, which is aligned with existing standards in green bond and sustainable debt markets.

Green bonds will provide a new tool in PSP Investments’ toolkit to support strong financial performance and responsible investment outcomes, noted a press release. It also said the framework will enable the organization to answer investor demand for sustainable debt products.

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PSP Investments will use green bond proceeds to fund projects with high environmental impact or those where environmental performance will be improved over time in the following categories: renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, sustainable water and wastewater management, circular economy adapted products, production technologies and processes, green buildings and clean transportation.

“In addition to equipping PSP Investments with a new financing vehicle that is expected to broaden our investor base, the green bond framework supports our comprehensive climate strategy, which will be released in 2022,” said Neil Cunningham, the organization’s president and chief executive officer, in the release.  “As a steward of retirement assets of over 900,000 contributors and beneficiaries, we have a longstanding practice of responsible investing as a means to better manage [environmental, social and governance] risks and generate the long-term adjusted returns needed to achieve our mandate.”

Read: Neil Cunningham to step down as PSP president and CEO next year