Swiss banking giant UBS has outlined a framework for both investor value and waste reduction in the new concept of ‘waste reduction bonds’, pointing out that just 4% of green bonds in issuance actively address subjects such as food waste or energy and plastic pollution.
Investors say the waste sector could be on the cusp of significant growth prospects.
In a new white paper, titled, Future of Waste, UBS says: ‘Waste reduction (WaRe) bonds’, in a similar structure to green bonds, would see proceeds used to finance projects, covering three broad areas: energy, packaging, and food.”
Future of Waste is the first in a series of regular white papers where UBS will explore longer-term sustainable investment opportunities.
The paper finds that currently around 30% of food globally is wasted at a cost of $1trn a year, while 10% of the global population goes hungry.
In addition, it says plastic packaging volumes are expected to more than quadruple by…