ESG and Ethical Investing

The Unstoppable Rise of Green Bonds

Green Bonds enter the mainstream: it's not just ESG….

Research from the Climate Bonds Initiative shows that issuance of green bonds doubled in 2016, and is likely to almost double again in 2017. Green bonds are finally going mainstream, with almost $150bn likely to be invested in the asset class this year. It's time for institutional investors to pay attention!

Climate change has steadily been moving up the agenda of institutional investors, and green bonds offer the potential to fulfil dual objectives; delivering competitive returns, whilst protecting the environment.

green bonds fields ESG white papers

Not just Green Bonds: Awakening the green giant (Fidelity International, 2017)
(For compliance reasons, this paper is only accessible in the UK and Europe)

Fidelity explains how they think there is a way to address investor concerns regarding climate change by targeting carbon reduction, instead of just green bonds, through borrowing data from the equity markets.

Green Bonds: Green is the New Black (Special Report from RBC, Apr 2017)
RBC deliver a report on the growing popularity of the Green Bond market and how issuance has increased significantly to $190B+, since inception in 2007.

Sustainable Finance Report (Deutsche AM, June 2017)
This 71-page paper by Deutsche Asset Management examines how activity in sustainable investing is gathering momentum. It looks into key trends such as asset owner demands, fiduciary duty, regulatory requirements, and climate change.

Video: The Rise and Rise of Green Bonds (BNP Paribas, June 2017)
Eila Kreivi, explains how green bonds have harnessed the power of the financial markets to drive positive change. And Ralf Bauer, explores how green bonds, including the innovative 'Tera Neva' solution have helped with funding.

Adapting Portfolios to Climate Change (BlackRock, 2016)
BlackRock details how investors explore opportunities and mitigate against climate risks. They conclude that climate-aware investing is possible and it doesn't have to compromise traditional goals of maximizing investment returns.

The Climate Change Challenge – From COP21 to COP22 (S&P Dow Jones Indices)
S&P Dow Jones explores the implications of climate change and the Conference of the Parties on "green finance" and how "green finance" can be used to combat global warming.

The Role of Exchanges in the Green Bond Market (Climate Bonds Initiative, 2017)
In this paper practices, such as the creation of green bond lists/segments, collaboration between exchanges and harmonisation of standards are outlined and discussed.

What's with the unstoppable rise of green bonds? (WEF, 2017)
Steve Williams, the Portfolio Manager responsible for Green Bonds in Nikko AM’s London office, examines how this burgeoning asset class is likely to develop into a mainstream component of global fixed income portfolios.

Mainstreaming the Green Bond Market: Towards common standards (KPMG, 2016)
KPMG offers a definition of 'green' that can be applied to all sectors and asset categories.

The Green Bond Principles 2017 (ICMA, June 2017)
The Green Bond Principles (GBP) offer guidelines that recommend transparency, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information.

Fixed Income Investments in a Carbon-Conscious World (Lazard, Aug 2016)
This paper by Lazard Asset Management examines the rise of green bonds for fixed income investors. They define green bonds, explain the underlying principles, and outline the market and issuance.

What are Green Bonds? (World Bank, 2017)
World Bank aims to distinguish green bonds from other traditional financial instruments. It will also provide insight into the potential of green bonds to mobilize new sources of climate finance.

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