About SBP
The NSW Sustainability Bond Programme (SBP) supports financing approved NSW government expenditures that enable the long-term financial, environmental, and social sustainability of New South Wales. The SBP represents a pathway to mobilize capital through diversification of the NSW Government's investor base to support projects with positive social and environmental outcomes.
Under the SBP, the NSW Government can issue green, social, and sustainability (GSS) bonds. Unlike the NSW Government's regular bonds, which finance the government's general-purpose expenditure, the GSS bond proceeds are nationally allocated to eligible projects, and the environmental and/or social performance of those projects is reported annually to investors. The allocation of the GSS bond proceeds to a selected project does not provide additional funding above what has been approved. GSS bond investors do not have recourse to the project, its associated revenues, or underlying assets.
Enabling the issuance of GSS bonds under the SBP is a pool of eligible projects, which NSW Government entities can contribute to.
Our role
The Office of Social Impact Investment (OSII) delivers the SBP in partnership with NSW Treasury Corporation (TCorp) and the Department of Climate Change, Energy, the Environment and Water (DCCEEW).
OSII leads:
- the process for selection and evaluation of eligible projects for inclusion into the SBP pool, and
- the process for annual reporting.
OSII, in partnership with TCorp and DCCEEW, engages with government entities and their executives to support them in joining the SBP and their ongoing participation. This involves completing a Project Assessment and Reporting Criteria (PARC) document and ongoing annual reporting.
Benefits to NSW Government entities from the SBP participation
NSW Government entities benefit from participating in the SBP through:
- Highlighting and influencing sustainability practices through the lifecycle of government projects
- Drawing upon and contributing to global best practice in the discipline of impact and outcomes measurement, reporting and transparent disclosure of sustainability outcomes
- Inspiring innovative cross-government solutions to NSW’s most pressing environmental and social problems as agencies come together and share information
- Building staff capability and engagement in sustainable finance.
Eligibility criteria for NSW Government projects
Projects are evaluated against strict criteria to ensure the SBP’s integrity in supporting long-term social and environmental sustainability.
To be considered for inclusion in the SBP, NSW Government projects must meet all 3 minimum eligibility criteria:
- Agency projects must be Expenditure Review Committee approved and funded by Consolidated Fund, excluding funding from any specific revenue or allocated resources such as asset recycling, levy, local or Commonwealth Government, or finance leases. State Owned Corporation projects must be approved for a TCorp debt facility under the Government Sector Finance Act 2018.
- Address or mitigate a specific environmental or social issue and seek to achieve positive and transparent environmental or social outcomes that align to a Green or Social project categories specified in the NSW Sustainability Bond Framework.
- Have established (or have ability to establish) timely, robust and accurate data collection to enable annual reporting.
These eligibility criteria and other considerations that align with the Framework are captured in the PARC document for each project.
Reporting requirements of NSW Government entities
NSW Government entities must work with NSW Treasury and TCorp to produce the SBP annual report. This reporting obligation is a condition of participation and extends for the period over which their project is earmarked to a bond.
OSII works with Government entities to ensure rigor while helping limit the resources spent collecting and providing data. The SBP requires participating entities report data on project expenditure and indicators of environmental and/or social outcomes. The SBP annual report is assured by an independent third party.
OSII also creates opportunities for NSW Government entities to showcase their projects. Each project is highlighted in a feature article when first reported in the annual report. NSW Government colleagues have also participated in question-and-answer style interviews discussing their sustainability initiatives.
Annual reports are published on TCorp’s website.
Examples of selected projects
NSW Government entities have contributed projects across a range of globally recognised Green and Social Bond categories including:
Green/Social Bond category | Example project | Contributing agency/SoC |
|---|---|---|
Clean transportation | Parramatta Light Rail Stage 1 | Transport for NSW |
| Metro Northwest line | Sydney Metro | |
Sustainable water and wastewater management | Lower South Creek Treatment Programme | Sydney Water |
| Waterway naturalisation and stormwater improvement | Sydney Water | |
Affordable basic infrastructure | Improving Access to National Parks Program | NSW National Parks and Wildlife Service |
Access to essential services | Public School Infrastructure | Department of Education |
| Critical Communications Enhancement Program | Telco Authority |
| Transport access program – Tranche 3 | Transport for NSW | |
Affordable housing | Social Housing Maintenance Stimulus Program | NSW Land and Housing Corporation |
How to participate
Contact us at socialimpactinvestment@treasury.nsw.gov.au with a brief description of your project and your understanding of its eligibility. If you are unsure, we are happy to investigate project eligibility with you.