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At European level, according to Morningstar’s findings, there has been an increase from less than 400 billion open-end funds and sustainable ETFs (Exchange Traded Funds that allow investors to manage risks associated with environmental, social and governance factors) in 2017 to about 2.5 trillion in 2022.
Issuance volumes of green, social, sustainability and sustainability-linked (GSSS) bonds rebounded strongly in Q1 2023, resuming double-digit growth trends after falling 18% in 2022, according to a new report from Moody’s Investors Service. trillion in 2021. While the U.S. Non-financial corporate issuance in the U.S.
Moody’s forecasts the GSSS bond market to grow 10% in 2023 to issuance of $950 billion, after declining 18% in 2022 to $862 billion, from a record $1.05 Despite the 2022 decline, the sustainable bond market substantially outperformed the global bond market, which saw issuance volume fall by 27%. trillion in 2021.
Global issuance of labelled sustainable bonds – including green, social, sustainability, sustainability-linked, and transition bonds – declined sharply in the second quarter of 2024, as fewer new issuers entered the market and issuers contend with regulatory scrutiny, according to a new report released by Moody’s Ratings.
By region, Moody’s anticipates that Europe will maintain the largest share of GSSS volumes, after accounting for 45% of issuance in 2023, with sustainable bonds representing 20% of total bond issuances, and growing to $428 billion in 2023 from $411 in 2022, as sustainability issues remain top of mind for issuers.
For the second quarter, GSSS bond issuance volumes of $258 billion were flat over the same period last year, recovering from a sharp decline in the second half of 2022, and significantly outperforming the broader market, with GSSS bonds rising to 15% share of global bond market issuance.
In an oversubscribed market, greater opportunities for investors lie in social, sustainable, SLBs and blue bonds. billion in 2022. Green bond issuance made up just over half of labelled volumes in 2022, totalling US$487.1 This was followed by sustainability bonds contributing US$166.4 billion, social bonds US$130.2
The group’s latest report, “ A world in balance 2024:Accelerating sustainability amidst geopolitical challenges ” tracks advancements in organisations’ environmental and socialsustainability over the last three years. In late 2023, executives were planning to increase investments in sustainability this year. .
Social bond issuance picked up significantly in 2020 as governments implemented large support programmes and allocated bond proceeds to address the health crisis caused by Covid-19. Figures shown to right of chart are as at 30 June 2022. We expect more countries to follow.
Another example is a California law which has required plastic beverage containers to contain specified amounts of postconsumer recycled plastic since January 1, 2022. To be sustainable from the consumer’s perspective, packaging should be produced with a minimum of resources, be plastic-free and fully recyclable, but still look nice.
trillion), said the RIAA’s Responsible Investment Benchmark Report 2022 , co-authored by consultancy EY. Investment managers are also getting much better at backing up their claims around the sustainability of their portfolios, as they don’t want to find themselves on the wrong side of tightening greenwashing regulation and scrutiny.”.
Since then, heatwaves across the northern hemisphere, gathering energy and food security crises, and climate policy actions across the globe, notably in the US , have raised new questions about the path to a net zero economy – alongside concerns about the impact of inflation, disruption and transition on existing economic and social inequities.
An important key to unlocking that finance lies in green and sustainable emerging market bonds, which promise lenders both returns and the opportunity to invest in projects with an ESG impact. There’s a lot of greenwashing, and there are really weak standards in terms of additionality, materiality, accountability and transparency.”.
Investor demand for green, social, sustainability, sustainability-linked and transition bonds (GSS+) has surged in H1 2023, with regulatory developments bringing greater transparency and confidence to the market. Linklaters forecasts record year for green bonds, while SLB issuance suffers Q2 slowdown.
Global sustainable bond issuance surged in 2021, with data providers estimating total volumes just above or below US$1 trillion; green bonds accounted for roughly half. Moody’s ESG Solutions expects overall GSSS-labelled (green, social, sustainability and sustainability-linked) issuance to rise from US$992 billion last year to US$1.4
Combined, the regulation is designed to help European asset owners understand, compare and measure the sustainability characteristics of investment funds, limiting their exposure to greenwashing. . “We There may be areas where we may need to take further action, if we notice that there is a real risk and reality of greenwashing.
billion of climate finance for developing countries in 2022, it was revealed this week, exceeding for the first time the US$100 billion annual level set in Copenhagen in 2009. Ten years after – It might have taken them a little more than a decade, but at last they got there. Developed nations mobilised US$115.9
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