Blue Bonds: Investing in clean water and a healthy ocean

PGGM recently made its first impact investment in a so‑called Blue Bond. This step directly contributes to PFZW’s nature and biodiversity objectives and demonstrates that financial returns can go hand in hand with intentional, positive, and measurable impact on nature restoration and biodiversity.

The investment concerns a bond issued by SABESP, a Brazilian drinking water and wastewater company active in São Paulo and surrounding regions.

SABESP serves around 30 million residents in over 375 municipalities. The proceeds of the bond are used to improve access to clean drinking water and adequate sanitation facilities. Within the 3D credit portfolio, PGGM has invested approximately €15.6 million in these bonds.

What are Blue Bonds?

Blue bonds are bonds or loans issued by governments, companies, or international organisations to finance projects that:

• Improve access to clean water,
• Protect, restore, or sustainably manage oceans, coastal areas, and other water‑related ecosystems.

They are similar to the well‑known green bonds, but focus specifically on the “blue” part of our planet: seas, oceans, coral reefs, mangroves, and the sustainable use of marine resources. By investing in blue bonds, PFZW helps organisations and companies both improve access to clean water and protect marine life. 

How does this fit into our 3D strategy?

Through its investment in blue bonds, PGGM shows that financial returns can go hand in hand with intentional, positive, and measurable impact on one of PFZW’s impact themes  nature and biodiversity  with the aim of contributing to nature restoration and preventing biodiversity loss.

Why do we believe in Blue Bonds?

Blue bonds are a powerful example of how institutional capital can be mobilised for sustainable, high‑impact projects, while delivering at least market‑rate returns. They show that investors do not have to choose between return and impact both are possible.

Where do the proceeds of the SABESP Blue Bond go?

100% of the proceeds are allocated to water‑related activities, including:

• Improving access to safe drinking water and sewerage services,
• Reducing water losses,
• Strengthening the resilience of water infrastructure,
• Conserving and restoring marine ecosystems,
• Reducing waste and wastewater to prevent pollution.

Impact is measured by the volume of treated water, the number of residents served by the drinking water supply, and the number of residents served by wastewater collection and treatment. Collaboration for greater impact PGGM actively works with strategic partners to strengthen the blue bond market. 

We contribute our knowledge and experience to help ensure a robust market that delivers both financial returns and measurable impact.

One example is our collaboration with 3D credit manager T. Rowe Price, which has been selected by the International Finance Corporation (IFC), part of the World Bank, to further develop the blue bond market. The market currently has a size of around USD 30 billion and is steadily growing.

PGGM also participates in the Blue Economy Advisory Committee. This committee plays an important role in further developing the blue bond framework, with the aim of making it the standard in the capital market.