Texan by Nature is excited to recognize North American Development Bank (NADBank) as a 2025 TxN 20 honoree for their leadership in conservation and sustainability. NADBank‘s commitment to conservation, their projects, programs, best practices, and lessons learned are an example and inspiration for us all.

Honoree Name: North American Development Bank (NADBank)

Honoree Industry and Size: Financial, Mid-sized

Company Overview:
Company Overview: NADBank is a binational financial institution established by the Governments of the United States and Mexico to provide financing to support the development and implementation of environmental infrastructure projects, as well as to provide technical and other assistance for projects and actions that preserve, protect or enhance the environment in order to advance the well-being of the people of the United States and Mexico.

What is NADBank’s conservation and sustainability mission and why is it important to its culture?
At NADBank, we strive to provide leadership in binational cooperation, mobilizing investments in environmental infrastructure to achieve sustainable development in the communities we serve through exemplary and innovative financial, technical, and environmental solutions that meet the highest standards. At NADBank, we are transforming the U.S.-Mexico border region by advancing projects that protect the environment and promote regional development through green and sustainable financing solutions. Through our Sustainable Financing Framework, we assist public and private organizations in building a resilient future focused on environmental and social well-being. We promote resilience and provide a platform to share knowledge, ensuring that the future of border communities is better than today and that our ability to serve is preserved.

What steps is NADBank taking to address global natural resource challenges, and how are these efforts integrated into its overall business strategy?
Per our mandate, all NADBank-funded projects must have an environmental benefit. Most of these projects also have a climate-specific benefit. NADBank has determined that:

1. All its renewable energy projects have a clear mitigation benefit
2. Many water-related projects have a clear adaptation benefit, such as flood control and water conservation
3. And the remaining water projects have some level of a mitigation or adaptation component

 Under this classification, 59% of investments made in infrastructure projects already in operation have a direct climate benefit, while an additional 28% have less direct benefits related to water. NADBank’s short-term and long-term goals continue to be financing sustainable infrastructure projects that provide environmental benefits while also improving the quality of life for the U.S.-Mexico border residents. 

We work closely with public and private project sponsors to structure appropriate and affordable financing packages that meet the specific needs of each community or project. In addition to loans, NADBank offers grants through its Community Assistance Program (CAP), as well as administers grants from other entities such as the EPA. Likewise, it provides and administers technical assistance for studies and other activities to support the development and long-term sustainability of those projects. 

The unifying factor is that all funded projects must be environmentally friendly by either preventing or reducing contaminants, which is a requirement of the bank’s founding charter. 

We deepened our focus on developing new programs and mobilizing innovative financing tools to reach underserved communities and stimulate investment in high-impact sectors. To improve our responsiveness and effectiveness in the water sector, for example, we worked closely with our Board of Directors and developed the Water Investment Program (WIP), which will expedite the financing of basic water infrastructure projects. 

Likewise, recognizing the challenges posed by prolonged droughts and severe water shortages throughout the border region, we assessed alternatives to invest effectively in water conservation and diversification projects in the agriculture sector. In addition to touring irrigation districts and meeting with local leaders throughout the border region, we provided technical assistance to carry out a needs assessment of the hydro-agricultural sector in Mexico, which included an analysis of potential financing models and other assistance, as well as identified key stakeholders and mapped strategic alliances. A similar study of the U.S. agriculture sector is planned in 2025. 

The findings from these studies and meetings will shape our strategy and guide the design of financing tools to address water resilience effectively in both the agriculture sector and municipalities.

Who in NADBank is leading your conservation and sustainability efforts? What are some examples of employee engagement in conservation and sustainability at NADBank?
The Bank’s Management team is led by a group of highly experienced professionals committed to fulfilling NADBank’s mission as a leader in binational cooperation aimed at catalyzing environmental infrastructure investments and achieving sustainable development in the communities it serves.

The NADBank leadership team, along with staff, is driven to advance the mission of the bank with a variety of stakeholders to develop and build valuable partnerships at the local, state, and national levels. From meeting with university student leaders who are starting their careers in water to visiting with the highest policy makers at the state capitols, the NADBank team actively pursues opportunities to build effective relationships that help ensure and protect the environment.

Responding to the ongoing water crisis in the Rio Grande Valley, NADBank Chief Environmental Officer Salvador Lopez attended a meeting hosted by Cameron County Judge Eddie Treviño, Jr. and Hidalgo County Judge Richard Cortez, where he spoke about how NADBank can support water conservation efforts through technical assistance and infrastructure financing. The meeting was also attended by representatives of the International Boundary and Water Commission, several irrigation districts, and other water users.

San Antonio Council for International Visitors (SACIV) is a non-profit organization that arranges professional programming through the U.S. Department of State’s International Visitors Leadership Program. NADBank hosted a group of visiting leaders from the Middle East, India, and other Asian countries that learned about how the Bank works to finance infrastructure projects that enhance and preserve environmental conditions and improve the quality of life of people living along the U.S.-Mexico border. 

• Through its University Ambassador Program, NADBank has worked with UIW and other universities such as St. Mary’s, and Trinity universities.  The Bank enrolled more than two dozen undergraduate students from the U.S. and Mexico to participate in webinars, and presentations to create a hub for dialogue and interaction with the student community, and support their academic work and field of interest, especially in such areas as the environment, sustainable infrastructure projects, communication, international relations and business, and the economic, social and environmental aspects of the border. The students also helped disseminate the programs, projects and actions carried out by NADBank in benefit of U.S.-Mexico border communities. 
• NADBank Management also hosted 16 students from the University of the Incarnate Word (UIW) Master’s in Business program for a workshop led by Dr. Alberto Rubio. The session focused on the broader impact of businesses beyond profits, with a spotlight on sustainability and social responsibility. NADBank’s vision, mission, and core values were highlighted as exemplary models for integrating sustainability into business strategies. The workshop generated an engaging exchange of ideas, with future leaders exploring how purposeful business practices can create meaningful impact.

 Another way NADBank supports higher education programs is through its technical assistance program.   

• In 2024, the Bank along with Texas A&M Transportation Institute (TTI), Texas A&M International University’s (TAMIU) A.R. Sanchez, Jr. School of Business Texas Center for Border Economic and Enterprise Development (TCBEED) launched a transformative $250,000 study to analyze the impacts of implementing zero-emission vehicles (ZEVs) in cross-border trade operations.  The Cross-Border Drayage Comparative Pilot Study, officially signed at NADBank’s San Antonio headquarters, represents a significant step forward in advancing sustainable transportation solutions along the U.S.–México border. The project brings together leading academic institutions, industry partners, and development organizations to analyze the economic and environmental feasibility and impact of electric and natural gas-powered commercial vehicles in cross-border operations. The year-long study will focus on the Laredo-Nuevo Laredo port of entry, which processes nearly six million commercial vehicles annually and is the primary gateway for U.S.–México trade.  
• Another study funded by NADBank was an air monitoring study at the Bridge of the Americas, a port of entry that connects El Paso, Texas and Cd. Juarez, Chihuahua, Mexico.  New Mexico State University (NMSU) College of Agricultural, Consumer and Environmental Sciences headed by Dave DuBois, NM State Climatologist, where their team conducting a PM2.5 monitoring study at the Bridge of the Americas, a port of entry that connects El Paso, Texas and Cd. Juarez, Chihuahua, Mexico.  The study assessed ambient PM2.5 at BOTA capturing mobile source emissions from idling vehicles going northbound with the goal of collecting PM2.5 as close as possible to CBP staff working at booths.  The study began in fall 2023 and concluded in spring 2024.  

The Rio Grande-Rio Bravo is more than a border; it’s a basin that begins in the Colorado Rocky Mountains and is fed by tributaries like the Rio Conchos River in Mexico. Countless smaller tributaries wind through Texas, Coahuila, and Tamaulipas, supporting communities, ecosystems, and economies on both sides of the border. For the San-Antonio headquartered North American Development Bank, the Rio Grande River is a central focus of our mission to invest in sustainable infrastructure and ensure access to clean water.”

– John Beckham, Managing Director, NADBank

What conservation and sustainability programs and projects does NADBank lead and participate in?
Our Green Bond Program has been a fundamental tool for raising capital to implement important projects. It is also part of our commitment to offer genuine climate and environmental investment opportunities to private investors. 

To date, NADBank has issued three green bonds totaling $478 million that have been fully allocated to 16 eligible projects. All proceeds of the green bonds are managed and allocated to infrastructure projects in accordance with the Bank’s NADBank Green Bond Framework, which was first developed in 2018 and updated in 2020. The framework is consistent with the rules established in the Green Bond Principles by the International Capital Market Association and received a positive second-party opinion. Further details on the NADBank Green Bond Program can be found here. 

In June 2018, NADB issued its first Green Bond in the amount of CHF 125 million (equivalent to USD 126.4 million). The net proceeds were allocated to six renewable energy projects. NADBank has issued two additional green bonds: a CHF 180 million bond maturing in 2028 and a CHF 160 million bond maturing in 2033, equivalent to US$186 and US$166 million, respectively. Both were issued in 2020, and the proceeds are currently being allocated. As of December 2020, US$185 million from these two issues has been allocated to 11 projects.

Sustainable Financing Framework 

Building on the success of its Green Bond Program, NADBank has made strategic enhancements to broaden its scope by developing a more comprehensive Sustainable Financing Framework. This updated framework focuses on addressing the critical development challenges facing the border region, which are at the core of the Bank’s environmental mandate. 

Key components of the framework include targeted financing for initiatives in the areas of water and wastewater management, waste solutions, air quality improvements, urban development, sustainable energy projects, sustainable production, climate resilience and adaptation activities, access to basic services, and reduced exposure to air quality hazards. Each funded project is selected for its potential to deliver substantial environmental benefits and/or to improve access to essential services for the population of the border region. Our robust project evaluation and selection process ensures compliance with environmental and social governance standards and our ongoing commitment to transparency and accountability. 

S&P Global Ratings has provided an independent second-party opinion of the framework, affirming its alignment with our sustainability objectives and respected international principles and guidelines for green, social, and sustainability bonds and loans. 

2024 was another successful year of financing 17 projects for the Bank, totaling more than $313 million. The breakdown for loans and grants that were approved and/or projects financed that completed construction during 2024 is as follows: 

• 6 loans (2 of which were approved in 2024) representing approximately $310 million in financing for: 
  • Four energy storage projects located in Cameron, Hidalgo, Kinney & Maverick Counties.
  • One project was a solar park located in Uvalde County.
  • Completion of the third project in a 13-project portfolio for water/wastewater utility in El Paso County.
• 2 construction grants from NADBank’s grant programs (EPA’s BEIF & CAP) totaling approx. $2 million: 
  • 1 drinking water distribution project bringing first-time access to residents in El Paso County.
  • 1 water project replacing deteriorating ground storage water tanks in the Rio Grande Valley.
• 6 grants totaling more than $1,025,000 from NADBank’s Technical Assistance Program. 
• 4 grants totaling more than $345,000 from the Border 2025 Program supported through the US Environmental Protection Agency (EPA) and Mexico’s Ministry of the Environment and Natural Resources.

Of these projects, the following three were located in Texas: 

Arroyo Energy Storage in Cameron County, the MHWSC Ground Storage Tank Replacement in Hidalgo County, and the Fort Duncan Energy Storage Project in Maverick County. Resulting in:

• New/Improved access to drinking water service for 2,377 new/existing connections. 
• 2 New/Improved drinking water storage tanks. 
• 2 New Energy Storage projects
• 8 Energy storage facilities with an energy storage capacity of 280 MW. 
• 55,084 tons/year of greenhouse gas emissions avoided.
• 39 tons/year of nitrogen oxides emissions avoided.
• 38 tons/year of sulfur dioxide emissions avoided.
• 143 GWh/year of energy delivered. 

What strategies does NADBank use to educate and raise awareness among employees, customers, and stakeholders about the importance of conservation and sustainability?
NADBank takes a comprehensive approach to education and awareness efforts around conservation and sustainability. 

Internal Communication: 

Effective internal communication is essential to the Bank’s operations. We dedicate significant time to keeping staff informed and aligned through several tools, including: 

• Quarterly all-staff meetings 
• Monthly newsletters 
• Regular email updates from the Managing Director 

These communication efforts not only improve morale but also help staff stay focused on the Bank’s mission and long-term goals. 

Outreach to Potential Clients: 

NADBank maintains ongoing outreach to potential clients through consistent messaging and participation in key events. This includes: 

• The annual NADBank Summit
• State-hosted events where the Bank presents its work and priorities
• Webinars on topics relevant to the U.S.-Mexico border
• A newly launched blog
• Op-eds by NADBank leadership 

These initiatives raise the Bank’s profile and communicate its sustainability goals to potential public and private sector partners who may be interested in project financing. 

Stakeholder Engagement: 

Project events serve as a platform to demonstrate the Bank’s commitment to sustainability. Recognizing the influence of key stakeholders, NADBank successfully leverages the relationships and platforms that elected officials like Governors, Congresspeople, and other dignitaries have and invites them to participate in our events. This approach has led to greater media and social media coverage. 

We also maintain regular communication with policymakers, often providing quarterly updates. Additional tools for stakeholder engagement include a newly launched website and the publication of our annual report and financial documents online.

Can you share specific examples of successful partnerships or innovative collaborations NADBank has formed with other organizations to enhance sustainability and conservation outcomes?
At NADBank, partnerships are more than just formal agreements—they are bridges that connect ideas to impact. Whether we are joining forces with public agencies and utilities, private developers, or community leaders, our goal is the same: to turn shared challenges into opportunities for lasting, sustainable change along the U.S.-Mexico border.

These partnerships are dynamic, built on mutual trust and rooted in a common vision. They allow us to pool resources, mobilize innovation, and address the very real environmental and infrastructure needs of the border region. From water scarcity to aging water systems, the challenges may be complex, but together, we are better equipped to solve them. The following explains some partnerships on the U.S. side of the border. There will be a future piece focusing on NADBank’s partnerships in Mexico. 

WATER RESILIENCY FUND 

Earlier this year, American Rivers ranked it the fifth most endangered river in the U.S., citing severe drought and escalating water scarcity. This is not a distant threat, as less than 20% of flows from the Rio Grande now reach the Gulf. In 2024, two counties in southern Texas declared a state of emergency due to dangerously low water levels. Across the river, Mexican cities like Reynosa and Matamoros face similar hardships. 

Addressing this crisis requires a robust, binational response. That means collaboration among local communities, border states, federal agencies, and institutions like NADBank, which is jointly owned by the U.S. and Mexico. This crisis led the Bank to begin developing the Water Resiliency Fund, which is on its way to approval in 2025. This fund will be focused on water conservation and diversification for both the municipal and agricultural sectors. 

In 2024, the Bank completed the pilot project, Skills for Sustainability (S4S), a binational workforce development initiative to train water technicians, which has provided life-changing economic and educational opportunities for at-risk youth, while also filling a critical employee shortage in the water industry in El Paso, Texas, and Juarez, Chihuahua. More than 285 young men and women who graduated from the 140-hour training program are now beginning meaningful careers in the water sector or were empowered to pursue entrepreneurship or formal education. 

SKILLS FOR SUSTAINABILITY 

In El Paso, 79 of the 104 graduates secured entry-level jobs with El Paso Water (EPW), which has stabilized its workforce, alleviating a shortage of qualified workers across the entire utility by allowing experienced employees to be promoted into mid-level positions and long-serving employees to retire. 

Spearheaded by The Trust for the Americas, the program was brought to fruition through the collaboration of multiple partners, with financial contributions from NADBank, Microsoft, EPA, and the Waterhouse Group, as well as in-kind contributions from EPW, Success Through Technology Education, and Western Tech. 

Engaging potential employers as strategic partners for curriculum development and job placement was critical to the success of the program. In addition to incorporating their feedback into the training content, participants visited the companies, gaining helpful insights into job requirements and benefits. This approach was motivational for the participants as they could see how the training was designed to prepare them for the job. One-on-one conversations with potential employers and opportunities for hands-on experience also enhanced their readiness for employment in the sector. Based on trainee surveys, S4S also contributed to the socio-emotional growth and resilience of its participants, fostering long-term individual and community development, including helping create job opportunities for women in the water industry, as more than a quarter of the participants were women.

How does NADBank quantify investment and return on conservation and sustainability?
The Bank’s return on equity for 2024 was 2.6%. The return on equity is defined as the amount of profit or net income a company earns per investment dollar. Per its mandate, all NADBank-funded projects must have an environmental benefit. Most of these projects also have a climate-specific benefit. NADBank has determined that: (i) all of its renewable energy projects have a clear mitigation benefit; (ii) many water-related projects have a clear adaptation benefit, such as flood control and water conservation, and (iii) the remaining water projects have some level of a mitigation or adaptation component. Under this classification, 59% of investments made in infrastructure projects already in operation have a direct climate benefit, while an additional 28% have less direct benefits related to water.

How does NADBank see the future of conservation and sustainability evolving, and what role will it play in that progress?
NADBank has been working with stakeholders throughout the border region to tackle water insecurity head-on. 

One recent 2024 initiative we’ve launched is our technical assistance award to the four-county Rio Grande Valley region to develop a long-term water roadmap. We’re also finalizing a $400 million Water Resiliency Fund to support municipalities, irrigation districts, and other water users in adapting to current and future water challenges. This fund will invest in projects that conserve and diversify water resources holistically. We believe that transparency and community engagement are essential to building lasting solutions and want to make sure all stakeholders are invested in the approach we’ve chosen. 

NADBank has charted innovative financing strategies to support investments in sustainable projects in such sectors as water, energy, air quality, and urban development. An example of these efforts was the issuance of its first green bond in 2018 for $126 million. Consistent with the standards of the International Capital Market Association, the bond proceeds may only be allocated to green projects in the areas of sustainable water and wastewater management, pollution prevention and control, renewable energy, and energy efficiency. The six solar and wind projects financed with the proceeds of the first green bond collectively displaced the emission of more than 1.4 million tons of carbon dioxide from conventional carbon-based electricity plants during their first year of operation.

At NADBank, we are committed to ensuring that future generations along the Rio Grande enjoy water security, economic opportunity, and a river worth celebrating. As the year continues, let’s remember—rivers don’t recognize our borders, but they do require our shared responsibility. 

What is the one lesson that NADBank has learned from its conservation and sustainability efforts that others can take back and think about applying within their own space?
Continue to evolve and grow. It has been 30 years of identifying and learning the diverse realities of the U.S.-Mexico border landscape. Today, the border continues to evolve, driven by greater economic integration, population growth, and new investments fueled, in part, by shifts in global supply chains, including the recent trend in nearshoring. At NADBank, we understand that positive, long-lasting change begins with responsible investments. The Bank has directed our efforts as an institution that, in addition to providing targeted loan and grant financing, also evaluates, undertakes and invests in more comprehensive projects in close coordination with state governments, private businesses and local communities, solidifying the Bank’s role as a fundamental tool in facilitating the discussion and resolution of environmental issues affecting both countries. In the coming years, we will maintain the water sector as our highest investment priority (including its efficient use in agriculture), while also allocating resources to other preferred sectors, such as air quality (including energy generation and mobility) and solid waste management through innovative solutions that optimize community impact. Additionally, we will develop new financial products and instruments to offer attractive solutions to diverse market segments. Going forward, NADBank will continue reinforcing its position as a leader in binational cooperation and a key player that can rally public and private stakeholders in line with the strategic priorities of both countries. Without a doubt, the institution will keep promoting innovative investments and financing the development and implementation of environmental infrastructure that will contribute to a prosperous future for all of us.

Why is Texas an important home or base of operations for NADBank?
The Texas-Mexico border is approximately 1,254 miles long and is home to a variety of environmental challenges, ranging from drought-prone to flood-risk regions. The communities that line the Rio Grande often have limited resources and funding and need a partner like the NADBank to address water and wastewater needs. 

Recognizing the importance of the Texas-Mexico border, the Agreement Between the Government of the United States of America and the Government of the United Mexican States Concerning the Establishment of a North American Development Bank states the principal office of the Bank shall be in San Antonio, Texas, with a second office in Ciudad Juarez, Chihuahua, where of those employees live in El Paso, Texas. 

We are redefining the role of the border as a crucial linchpin in economic and social integration, with Texas being a vital tool delivering shared environmental solutions through the development and financing of infrastructure that prioritizes economic development and improved regional well-being. 

Thanks to the commitment and dedication of our Board of Directors, our extraordinary team members and partners, at the North American Development Bank, we are celebrating not only the progress made throughout the length and breadth of the region, but also the ability to boost its transformative potential, where collaboration, innovation and sustainability are setting the foundation for a more prosperous and united North America.

Is there anything else you’d like to share that makes NADBank’s strategy and approach to conservation and environmental sustainability unique?
NADBank is a one-of-a-kind binational institution that recognizes the importance of establishing and strengthening such partnerships. The nearshoring of supply chains in the post-pandemic era offers a tremendous opportunity to rethink the role of the border as an engine of growth. However, this process must go hand in hand with strategic investments aimed at achieving a sustainable environment, energy supply, and water resources. NADBank has taken on this task by promoting key initiatives based on a solid financing pipeline and the certainty that a greener region is a more competitive region, where resilient infrastructure and decent jobs can flourish. 

The development of efficient and affordable infrastructure that enables universal access to basic water and wastewater services, mobility systems for people and cargo that improve air quality, clean and renewable energy, and more efficient manufacturing processes are key elements for ensuring sustainable economic growth and improving life on the border.

Find out more about NADBank’s conservation and sustainability efforts here.