Be part of a new way of banking
Why we need sustainable banking:
We buy organic veggies and green energy. In the meanwhile, the money in our savings account might be financing a new coal power plant. Sad, but true.
Luckily, money can be part of the solution. That’s where we come in. Together with you we make banking sustainable.
We don’t base sustainability on gut feeling. Instead, we have a strict list of criteria for managing where your money goes – and where absolutely not.
141.5 Mio Euro invested in sustainable projects
0 euro invested in destructive industries
Together we finance positive change.
Learn more about our impact projects.
Expansion renewable energies and the preservation of clean waters
What do we really need to survive? Air, water and warmth. By funding renewable energies and protecting our waters we protect the base of life. One of the core tasks of sustainable banking is, in our opinion, the financing of future-proof projects. That’s why we invest in Green Bonds.
What are green bonds exactly?
Banks need capital to be able to give loans. They borrow that money from private investors (like you) or institutional investors (like Tomorrow or our partner Solarisbank) by selling bonds at the stock exchange. That’s called refinancing a loan. After an agreed period they need to pay back the capital plus interest to the creditor (in this case Tomorrow/Solarisbank). At Tomorrow we use your money exclusively to buy bonds which strictly finance sustainable projects. Green bonds focus on refinancing environmentally friendly initiatives. We invest part of our Tomorrow capital in green bonds issued by Förderbank NRW, Nordic Investment Bank, the state of Germany, KommuneKredit and Hochbahn AG.
About Förderbank NRW’s Green Bonds
The green bonds are finance products issued by Förderbank NRW to exclusively refinance environmentally friendly projects that explicitly address the United Nations’ 17 Sustainable Development Goals (SDGs). In 2019 we invested €10 million and another €5 million in the year 2021. The bonds, which each amount to €500 million, have meanwhile been issued for the ninth time and have financed numerous green initiatives in Germany’s region of North Rhine-Westphalia in recent years. Their main goal is to expand renewable energy, increasing energy efficiency and safeguard nature conservation and environmental protection. In the past, for instance, proceeds from the bond have been used to restore the River Emscher, which has brought huge ecological advantages for the region.
Förderbank NRW’s green bonds portfolio is divided into four different areas. In 2019 we invested in a bond where the majority (roughly two thirds) of the total of €500 million is being used for the development of renewable energies (SDG 7 & 13) in North Rhine-Westphalia. Here, the main focus is on constructing wind power plants, but photovoltaic systems are also part of the portfolio. Another focus area of the green bonds is the modernisation of public facilities (SDG 3, 11 & 13), for instance by establishing heat recovery systems in hospitals to make them more energy-efficient. The green bonds also finance loans to private homeowners who want to optimise the energy efficiency of their houses. They are also used to finance renaturation projects to improve waters and biodiversity in the region.
The fourth core area is the support of clean transport projects, such as electric buses or e-charging stations (SGD 13 & 11).
And in 2021 we invested in a green bond, in which half of the total of €500 million went towards the renaturation of the River Emscher (SDG 14 & 15). Most of the second half is being used to finance wind farms, photovoltaic installations and grid extensions.
About Nordic Investment Bank’s Environmental Bonds
The Environmental Bonds are green bonds issued by the Nordic Investment Bank (NIB), with the aim of expanding renewable energies and promoting energy efficiency in buildings. These investments will help to create new energy plants but also to reinforce existing infrastructure. The investments mainly focus on Sweden, Norway and Finland. An exciting pilot project one of the bonds fund are electric ferries which are already in use in Norway.
All supported projects explicitly address the United Nations’ Sustainable Development Goals (SDGs). NIB’s Environmental Bond is divided into six areas. The largest of these – accounting for 27 percent of the total bond – is invested in expanding renewable energies, especially wind, solar, tidal and wave power plants (SDG 7). In addition, part of the funds is also invested, for example, in developing, designing and producing new technologies for renewable energies (SDG 13).
25 percent of funds are invested in measures to improve the energy efficiency of buildings. This is done by renovating existing buildings, including making improvements to heating systems, insulation, lighting or electrical devices. Another 25 percent is invested in water conservation and protection, which includes wastewater treatment and flood protection (SDG 6). Above that, different projects focus on the expansion of nature reserves and the preservation of biodiversity to protect and restore freshwater and marine ecosystems (SDG 13; SDG 14). Clean transport solutions (SDG 11) are another area supported by the bonds, accounting for 12 percent of invested funds. The efforts mainly focus on the further development of electricity and sustainable biofuels including the necessary infrastructure (e.g. rails, charging stations, fuel distribution systems, bicycle and pedestrian infrastructure).
Tomorrow has invested €11 million in green bonds by NIB.
About the federal green bond of Germany
This green bond is issued by the state of Germany to finance the German policies for sustainable development. Core of the strategy is the realization of the United Nations’ Sustainable Development Goals (SDGs) and the 1.5°C goal of the Paris Agreement. To achieve these goals the state of Germany issued federal green bonds for the first time in 2020. Tomorrow has invested 5 million euros in these bonds. With your money we finance the transition to a German and worldwide economy that emits less carbon, is more sustainable and uses fewer resources.
58 percent of investments goes into renewable energies and mobility, for example by improving necessary infrastructure, building biking paths and financing public transport and electric mobility. In addition, three percent is invested in ecological farming and forestry and ten percent in thermal insulation and energy efficient heating and building (SDG11). five percent funds research and education (SDG4).
Additionally, the funds from the federal green bond are used for international collaborations in climate projects, nature preservation and environmental protection. To us at Tomorrow the aspect of climate justice is very important. Generally speaking, those who suffer the most from the climate crisis are the least responsible for it. The funds from the federal green bond partly support the GIZ (German Corporation for International Cooperation), which is active in over 120 countries to sustainably improve the quality of life of the local population.
About KommuneKredit’s green bonds
KommuneKredit is a federal credit institution in Denmark. They issued their first green bond in 2017 to raise funding for the sustainable transition of Danish communities. Loans are given to Danish municipalities and cities, which can then use the money specifically for sustainable and social projects. The “green committee” of KommuneKredit has been lending more than 3 million euros for 410 projects. All projects explicitly need to address the Sustainable Development Goals of the United Nations (SDGs).
52 percent of investments support local climate protection measures as well as the transformation to energy and heat supply that is resource-saving and efficient, e.g. by modernizing outdated waterworks. An additional seven percent of funds is used to improve public transport, both on and off land. Denmark has more than 7,300km of coast and more than 80 inhabited islands. Therefore, a big emphasis is put on coastal protection. Ferries are converted to hybrid to reduce carbon emissions on waterways and protect Danish coastlines and its flora and fauna. Next to that, communities can receive funding for social infrastructure projects, for example energy-efficient construction and renovations of schools, community buildings, sport facilities and elderly housing. Tomorrow has invested a total of €5,900,000 in three green bonds of KommuneKredit.
About Hochbahn AG’s infrastructure bond
The infrastructure bond of Hochbahn AG aims to support the transition to environmentally friendly transport in Hamburg. All funded projects are selected based on whether they contribute to the Sustainable Development Goals of the United Nations (SDGs). At Tomorrow, we have invested more than 1 million euros in the first infrastructure bond of this kind in our hometown. The bond provides 500 million euros for transport projects in Hamburg, e.g. to buy 50 new trains and 160 electric buses and to maintain Hamburg's subway lines.
The metropolitan region of this Northern German city counts 5.3 million inhabitants, of which more than 1 million commute daily. As 65% of these people go by car, they cause the majority of carbon emissions of all traffic in the city. In its climate strategy Hamburg has set the goal to become a climate neutral city. For this purpose the traffic sector needs to save 1.4 million tonnes CO2. The projects receiving funding from the infrastructure bond are part of the city's efforts to make public transport more attractive than taking the car. Hochbahn itself wants to be climate neutral by 2030.
The transition to environmentally friendly transport in cities does not only reduce carbon emissions, but as well other pollution and noise. Additionally, obsolete parking spaces can be transformed into sidewalks, biking paths, parks and playgrounds. All this improves the quality of life in urban areas.
Green Bond Municipality Finance Plc
MuniFin (Municipality Finance Plc) is one of the largest state banks in Finland. It grants loans exclusively to local authorities, municipal companies and not-for-profit housing associations based on criteria relating to environmental compatibility and social responsibility. Since 2016, MuniFin has offered ‘green finance’ in order to reduce Finnish CO2 emissions and finance the transition to a climate-resilient economy. Before extending loans, MuniFin analyses every project to determine its long-term positive impact on the environment and climate. To give companies and local authorities an added incentive to engage in climate-friendly practices, the bank awards attractive loan conditions to progressive projects. Outdated industries such as coal-based electricity generation are ruled out from the outset.
MuniFin has already issued five green bonds to date. In October 2021, we invested €2,000,000 in one of them, the total value of which is €500 million. Since 2016, the green bonds have provided capital to numerous sustainable projects in the form of loans. 41.4% was used to expand public transport (SDG 11) and 47.8% to build resource-friendly homes, hospitals, healthcare centres, schools and inclusive day care facilities (SDGs 11, 3 and 4). The loans also enabled the local authorities in Finland to expand renewable energies, to improve the energy efficiency of existing building structures and to finance water and wastewater management (1.8% – SDG 6).
Instituto Credito Official (ICO)
Since the 1960s, Spanish state bank ICO has focused on providing financial support to small and medium-sized companies with a view to encouraging innovation and business in the long term. To date, ICO has already issued eight social bonds and, since 2019, three green bonds for promoting socio-ecological transformation.
The green bonds, each of which has a volume of €500 million, are used first and foremost to fund renewable energies at national and international level (SDGs 7 and 13). However, they are also used to invest in low-emission public transport (SDGs 11 and 13), to finance the transition to sustainable agriculture and to improve local waste management, water management and wastewater management (SDGs 14 and 15). In October 2021, we invested a total of €2.5 million in two green bonds issued by ICO. In this way, we are using your money to help restructure the economy in a sustainable way and to promote climate resilience.
For instance, the bond funds helped finance Spain’s largest photovoltaic system. This project not only created 1,200 new jobs in the structurally weak region of Extremadura but also eliminated over 215,000 tonnes of CO 2 a year, while supplying 250,000 people with green electricity (SDGs 7, 8 and 13).
About the green bonds from French region Île-de-France
The green bonds issued by Île-de-France are geared towards the sustainable transformation of the region. The funds from the bond are used to work towards the Sustainable Development Goals. Tomorrow has invested a total of €6.6 million in three sustainable bonds issued by the Île-de-France region of France. Home to 12.2 million people, the region around Paris is the most densely populated département in the country. With over 887,750 companies and the highest tourism revenue in the world, vast investments are needed to restructure this region to make it climate-friendly and sustainable.
Accordingly, the main focus of the bonds over the past few years has been on expanding public transport (SDG 9 & 11) and on renovating and modernising public buildings like educational institutions and sports centres (SDG 4). Promoting inclusion and social housing and helping small and medium-sized companies to retain jobs is to be instrumental in reducing social inequalities (SDG 8 & 10). These bonds also help to protect biodiversity (SDG 14 & 15) and develop renewable energies (SDG 7).
Tomorrow has invested €6.6 million in green bonds issued by the Île-de-France region.
About the green bond issued by the Wallonia region of Belgium
The green bond issued by the Wallonia region, in which Tomorrow has invested €1.6 million, aims to bring about extensive sustainable change there. The total volume of the bond is €500 million. Located in the south of Belgium, the region has a population of 3.6 million people. Up until the 1950s, it was an important industrial centre – particularly coal and steel – but some parts of Wallonia are among the lowest-income areas anywhere in Belgium today.
Having committed itself to the Sustainable Development Goals of the UN’s Agenda 2030, the region plans to invest extensively in a socio-ecological transformation with a view to creating villages, towns and cities with a decent quality of life for both current and future generations. As well as funds being invested in renewable energies (SDG 7) and in renovating and modernising buildings and public transport (SDG 9 & 11), they will be channelled into measures aiming to detoxify and treat contaminated soil (SDG 15) and to establish a regional supply of organic food with short transport distances (SDG 12 & 13). Together with farmers, greenhouse gas emissions are to be reduced and steps taken to protect waterways and the environment (SDG 14 &15).
Tomorrow has invested €1.6 million in a green bond issued by the Wallonia region.
Waterbond Nederlandse Waterschapsbank N.V.
The green bond issued by Nederlandse Waterschapsbank N.V. is also known as the Waterbond, as it is primarily used for financing flood protection, waterway management, water treatment, wastewater treatment and renaturing wetlands in the Netherlands.
Tomorrow has invested €2.600.000 in the Waterbond, which was issued in 2015. The total volume of this special bond is €1 billion. The money is made available exclusively to the Dutch water authorities, primarily for financing climate change adaptation. Two thirds of the Netherlands are exposed to a high risk of flooding as a result of climate change. This is not only due to rising sea levels but also to problems caused by overflowing rivers that can no longer run off into the sea. At the same time, we can expect more frequent and very intensive rainfall in future. This is why the Waterbond is focusing on flood protection in particular. 28% of funds are used for this: for dykes, redesigning river courses and dredging silted-up river and harbour basins (SDG 11), for example. 21% is used for wastewater treatment and safeguarding clean drinking water (SDG 6). A further 20% goes to water transport, pumps and retention basins. As well as climate change adaption, the funds finance projects for reducing CO2 emissions and improving biodiversity, mainly through renaturing moors and wetlands (SDG 13,14 and 15).
Providing social and sustainable housing and ensuring quality of life and inclusion
Every human being deserves an affordable home. To make this vision come true we invest a part of your money in social bonds. €7,400,000 went into the SDG Housing Bond issued by Nederlandse Waterschapsbank N.V and €5,000,000 into a Social Bond issues by Förderbank NRW and €15,000,000 into the social bond issued by CADES.
What are social bonds exactly?
Banks need capital to be able to give loans. They borrow that money from private investors (like you) or institutional investors (like Tomorrow or our partner Solarisbank) by selling bonds at the stock exchange. That’s called refinancing a loan. After an agreed period they need to pay back the capital plus interest to the creditor (in this case Tomorrow/Solarisbank). At Tomorrow we use your money exclusively to buy bonds which strictly finance sustainable projects. Social bonds focus on refinancing social initiatives.
About Nederlandse Waterschapsbank N.V.’s “Housing Bond”
The SDG Housing Bond is a social bond issued by Nederlandse Waterschapsbank N.V. that focuses on creating social housing in the Netherlands. The apartments and rents are adapted to income levels and are capped with a maximum rent of €710.68 per month (up to this amount renters can get subsidies from the government). 80 percent of new housing is reserved exclusively for households and families with a maximum income of €36,798 per year (2018). 10 percent is reserved for people with special needs (e.g. health-related conditions).
Furthermore, the investments also go into other areas such as sustainable communities, diversity, integration, energy efficiency, quality of life and resident satisfaction. All projects explicitly address the United Nations Sustainable Development Goals (SDGs). More than 50 percent of funds is used to modernise existing houses, particularly to improve energy efficiency. This includes equipping houses with solar panels and replacing old heating systems with more efficient ones. In addition, windows, roofs and walls were insulated more effectively (SDG 7; SDG 11). 56 percent of the apartments are social housing and 11 percent of the apartments are available for single parents, predominantly women (SDG 1; SDG 5; SDG 10).
A further part of the funds is invested in improving the district and providing facilities for the community. For this purpose, individual neighbourhoods are assigned a “Social Management Label” which is based both on quantitative survey findings and on qualitative insights from interviews with residents. Depending on the needs of the community suitable measures are taken accordingly.
Tomorrow has invested €7.4 million in the social bond issued by Nederlandse Waterschapsbank N.V.
Förderbank NRW’s Social Bond
Förderbank NRW’s Social Bond 2021 has a total volume of €1 billion and contributes to strengthening economically weak communities.
54% of the investments go towards the digitalisation and innovation of owner-managed small and medium-sized companies. In structurally weak regions in particular, businesses are key to improving life in towns and villages. Such loans help companies to remain competitive and offer solutions for long-term and youth unemployment (SDGs 8 & 10).
26% of the investments go to local communities to guarantee public resources and services. This includes, for instance, the financing of climate and flood protection, road infrastructure and making city centres vibrant and safe (SDGs 10 & 11).
As part of the “Gute Schule” (Good School) initiative, another 11% is supporting school authorities with digitalisation and modernisation. As well as the provision of digital blackboards and projectors, the funds are also invested in inclusion measures. Building alterations make it easier for children with special needs to access education and find their place in the community (SDG 4 & 10). Within this context, energy efficiency is also improved, with existing school buildings either being renovated or modified (SDG11).
9% of the investments help low- to medium-income families to build their own houses. Another focus of these social bonds is diverse cities, towns and villages that can only exist if people can find affordable housing (SDGs 1, 11 & 10).
Tomorrow has invested €5 million in the fund.
About the CADES social bond
The Caisse d’Amortissement de la Dette Sociale (CADES) is a French sinking fund established to redeem social debt. The French state issues bonds to finance French social security benefits for its people. Tomorrow has invested €5 million in the fund, the total volume of which is €6 billion. All of the fund’s targets are geared towards the United Nations Sustainable Development Goals (SDGs).
Financing social security is relevant for us all when it comes to ensuring a good quality of life. This is because it is an important state instrument for combatting poverty and economic and gender inequalities (SDG 1, 5 & 10). It also permits universal healthcare coverage (SDG 3) and helps to make cities and communities more sustainable (SDG 11).
In addition to basic social security benefits in the form of compensation for illness, parental leave or work accidents, the fund helps to finance social programmes and projects. This includes for example setting up advice centres for mothers and families or building barrier-free housing for seniors. It also funds programmes for helping people who are ill and unable to work or for reintegrating them into everyday working life, something that has been even more of an issue since the COVID pandemic.
Tomorrow has invested €15 million in the fund.
Instituto Credito Official (ICO)
Since the 1960s, Spanish state bank ICO has focused on providing financial support to small and medium-sized companies with a view to encouraging innovation and business in the long term. ICO has already issued eight social bonds and, since 2019, three green bonds for promoting socio-ecological transformation.
The social bonds, each of which has a volume of €500 million, are used to pre-finance loans that primarily help small, medium-sized and micro-enterprises to create or safeguard jobs. The focus here is on selected economically weak regions of Spain, communities that are affected by depopulation and regions in which natural disasters are a significant factor. This means that the bond contributes primarily to SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation and infrastructure) and SDG 10 (Reduced inequalities).
In March 2022, we invested a total of €2 million in the new social bond issued by ICO. This allows us to use your money to promote economic activity that will contribute to growth and development in Spain, while at the same time improving the distribution of the country’s wealth.
Since 2019, the proceeds of the bond have been used to finance more than 7,100 projects, which in turn have created or safeguarded an estimated 62,000 new jobs.
About the Council of Europe’s social bond
The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate. It was founded in 1956 with a view to finding solutions for the challenges associated with the mass movement of refugees following the Second World War. The funds from the bond are used to work towards the Sustainable Development Goals.
With its bonds, the CEB finances its general work in the areas of inclusive growth, supporting disadvantaged groups and ecological sustainability. Tomorrow has invested €9,950,000 in the social bond.
The CEB uses the funds from the social bonds primarily for building and renovating affordable housing, for providing access to essential services such as healthcare or educational projects, and for creating new jobs. In this way, the social bond contributes significantly to SDG 4 (Quality education) and SDG 11 (Sustainable cities and communities).
Tomorrow has invested €9,950,000 in the Council of Europe’s social bond since June 2022.
(Additional) financing of institutions and companies with business practices that are in line with the SDGs
To create a good and safe future for everyone and to move forward in the required time as well, we need planning security for institutions and companies. However, the onset of multiple crises has made this increasingly difficult. To provide support here, part of your money is channelled into non-earmarked bonds that (re-)finance various institutions. We are currently investing €15 million in two bonds of the European Stability Mechanism.
What exactly is a bond anyway?
Even banks need money before they can provide loans. They borrow this from private investors (like you) or institutional investors (like Tomorrow or our partner Solarisbank) by selling securities called ‘bonds’ on the stock exchange. This is called refinancing and means they have to pay back the capital to the creditor (in this case Tomorrow/Solarisbank) after a specific term, together with interest. Tomorrow only uses your money to acquire bonds that specify the sustainable projects into which the money is channelled. However, in the case of bonds without a specific thematic focus, the money is not earmarked – meaning that different areas can be refinanced.
About the European Stability Mechanism (ESM) bonds
The European Stability Mechanism (ESM) is part of the EU strategy for safeguarding the financial and monetary stability of eurozone states. The intergovernmental organisation, headquartered in Luxembourg, was founded in 2012 and is responsible for mobilising financial resources and securing the solvency of overindebted members through loans and guarantees. In this way, the supported projects contribute to the United Nations SDGs.
These bonds are part of the ESM Debt Issuance Programme, which includes 30 securities.
The funds from the bond are used by the ESM firstly for general operations. This means that monetary stability in Europe is safeguarded by the ESM providing financial support to eurozone countries and giving them access to cheaper financing so that they can improve their debt sustainability. So far, Greece, Spain and Cyprus have benefited from this programme. The funds are also used to finance or refinance eligible expenditure in the context of pandemic crisis aid.
This is in line with our investment criteria as the ESM helps to ensure financial stability in the eurozone and, in turn, contributes to SDG 16 (Peace, justice and strong institutions). In addition, the bond is used to help finance only those projects that do not have any negative effects on people and the climate. This is why refinancing is also possible for non-earmarked forms in this case.
Tomorrow has invested €15,000,000 in two bonds of the European Stability Mechanism (10,000,000€ in ISIN: EU000A1Z99L8 and 5,000,000€ in ISIN: EU000A1Z99Q7).
About the Deutsche Bahn finance bond
The aim of the Deutsche Bahn finance bond is to refinance German national rail company Deutsche Bahn. Tomorrow has invested a total of €5 million in the DB finance bond, which has a total volume of €850 million. Increased rail transport is a central part of Germany’s efforts to meet national climate targets in the transport sector. Deutsche Bahn aims to reach climate neutrality by 2050 and is assuming responsibility for protecting the climate, the environment and natural resources.
The funds raised through the bond are used to finance the companies belonging to the Deutsche Bahn Group in various lines of business: long-distance transport (DB Bahn Fernverkehr), regional transport within Germany (DB Bahn Regio), regional transport outside Germany (DB Arriva), cargo transport (DB Schenker Rail), logistics (DB Schenker Logistics) and services (DB Dienstleistungen).
The DB Group has its own company strategy for reducing CO2 emissions. All rail transport is to be operated with green electricity from 2038 and all transport is to be climate-neutral by 2050. The train infrastructure is being increased as part of the ‘Starke Schiene’ (Strong Rail) expansion strategy, reducing total emissions in Germany by up to 10.5 million tonnes of CO2 a year. We see Deutsche Bahn as a sustainable company that is playing an important role in Germany’s sustainable transformation.
Tomorrow has invested a total of €5 million in the DB finance bond.
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