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This finding raises critical questions about how sustainable finance is marketed and whether green labels alone are enough to drive real environmental change. Greenbonds and retail investors Greenbonds are a financial tool designed to fund environmentally friendly projects.
Paris-area public transport authority le-de-France Mobilits announced that it has raised 1 billion in a new greenbond offering, the first by a public entity to be issued under the European GreenBond (EuGB) Regulation.
The post Greenbonds or greenwashing? ImpactAlpha, July 29 – Mowi ASA, the Norwegian fish farming giant, raised €200 million from investors last year in what was the seafood industry’s. Growth of aquaculture poses risks for ocean health. appeared first on ImpactAlpha.
The government of Australia will issue its first ever greenbond next year, joining the growing ranks of sovereign debt issuers participating in the sustainable finance market to help fund their environmental sustainability initiatives, according to an announcement on Friday by Treasurer Jim Chalmers.
Lawmakers in the European Parliament and the European Council announced today an agreement on the creation of standards for proposed European GreenBonds (EuGB), as well as voluntary disclosure guidelines for greenbond issuers aimed at preventing greenwashing in the sustainable bond market.
The post The Brief: Stakeholder capitalism in emerging markets, inclusive climate transition, barbershop tech, virtual learning, greenbonds or greenwashing? Social entrepreneurs in Asia, Africa and. appeared first on ImpactAlpha.
million pounds of plastic from flights; KKR, ECP to invest $50 billion in datacenter capacity and power generation; law firms ramp up ESG training for lawyers; capital raises for sustainable heating, industrial decarbonization, energy sector emissions solutions, and more. Copper Mine Operations to Renewable Diesel Southwest Airlines Eliminates 1.5
The Council of the European Union announced today the adoption of a regulation creating a new European GreenBond Standard, marking the last major step for the establishment of a new European GreenBonds (EuGB) label, aimed at fighting greenwashing and helping advance the sustainable finance market in the EU.
Linklaters forecasts record year for greenbonds, while SLB issuance suffers Q2 slowdown. 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.
Lawmakers in the European Parliament voted 418-79 on Thursday to approve the adoption of a new European GreenBond (EuGB) label, aimed at fighting greenwashing and providing investors with confidence that their investments are being appropriately directed towards financing sustainable business activities and technologies.
Impakter EU GreenBond Deal: Sustainable Gold Standard or Unrealistic? In what’s being labelled a “landmark’’ moment for sustainable finance, EU negotiators last week finally announced the agreement of a provisional deal establishing a gold standard for European greenbonds (EuGB). appeared first on Impakter.
As companies respond to demands for both mandatory and voluntary ESG disclosures, the risk of greenwashing grows. Investors and customers are also initiating litigation to hold companies accountable for greenwashing. Why evaluate greenwashing risks? Recent studies highlight how prevalent greenwashing has become.
Financial products and funds labelled as ‘sustainable,’ green,’ or ‘ESG’ on Swiss financial markets will be required to align or contribute to specific sustainability goals, with providers required to disclose how they intend to achieve the goals, according to new proposed rules unveiled by the Swiss Federal Council.
While 2024 issuance remained flat year-over-year at $1 trillion, however, sustainable bond volumes underperformed strong growth in the overall bond market in the year, with share of global issuance declining to 11% from 15% in the prior year. Global focus on sustainable development and investment will support the market.
Out of its class A secured debt of £15 billion, about £3 billion is labelled green, potentially making the company a greenbond default case. Greenbonds are structurally no different to conventional bonds under the same class (with the same ranking, covenants and security package among all creditors in the case of distress).
Corporate interest in sustainability-linked loans has grown rapidly over the past several years, as the financing provides flexibility to use proceeds for general corporate purposes, while with instruments such as greenbonds, raised funds can only be allocated to specific categories of green projects.
An interesting ongoing trend is the growth of greenbonds. In 2022, greenbond issues accounted for more than half of all sustainable bonds issued in the same year (58%, $487.1 After demonstrating resilience in a turbulent economic environment, greenbond issuances in the first half of 2023 increased by 22.2%
Asset managers Head of Fixed Income hopes market expansion will eliminate need for the purely greenbond-focused vehicle within the next decade. Niche to mainstream evolution Storebrand stated that the fund was the first commercial greenbond fund, building on the first ever greenbond issued by the World Bank in 2008.
A veteran greenbond market participant said 'greenwashing' was not really present in the greenbond market despite substantial hand-wringing around the topic.
The EU's GreenBond Regulation will create an extra burden for issuers, but issues that comply will prove more attractive to investors, write Massimiliano Danusso and Francesca Marchetti
The IEEFA’s Christina Ng says China’s state-owned enterprises continue to allocate up to half of their greenbond proceeds to non-green projects. . China’s ambition to green its financial market has been making significant progress. SOEs accounted for about half the onshore green issuances from 2019 to 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. Non-financial corporate issuance in the U.S.
The pullback threatens to erode years of progress, which has made Europe the leading market for sustainable funds , greenbonds and other responsible investments, and jeopardizes the capital needed for the EUs ambitious climate goals. But Maria van der Heide, head of EU policy at ShareAction, a U.K.-based
They in fact have no common yardstick to measure “sustainable” and are instead responding to general environmental and social concerns in the market with a range of instruments such as greenbonds and sustainability-linked loans that pay a bit of lip service to these issues while making money for the banks.
Many investors are already familiar with greenbonds, which have been on the market since 2007. Greenbonds finance a specific project or projects with an environmentally beneficial purpose. Since then, companies have issued new types of bonds to finance a range of green, social and sustainable projects (Display).
This week in ESG news: SEC releases long-awaited climate disclosure rules… and Republicans file lawsuit to block them; Unilever sets new value chain emissions reduction goals; EU lawmakers agree to laws targeting 100% recyclable packaging and banning products made with forced labor; Invesco joins growing list of investors exiting Climate Action 100+; (..)
The post As seafood industry adopts greenbonds, a report charges greenwashing appeared first on ImpactAlpha. ImpactAlpha, July 29 – Mowi ASA, the Norwegian fish farming giant, raised €200 million from investors last year in what was the seafood industry’s.
The Hong Kong Airport Authority (HKAA) has raised $1 billion from a greenbond tranche which forms part of its broader funding of the runway expansion project, a year after its previous controversial deal.
By assessing the positive and negative impacts of total volumes of financial flows and stocks on climate mitigation goals, the report found a low degree of climate-alignment across asset classes Within an outstanding corporate bonds universe of US$34 trillion in 2023, greenbonds made up US$1.6 trillion, compared with US$1.7
Greenbonds continued to account for the majority of sustainable bond issuance at $146 billion for the quarter. Greenbond volumes were down 12% year-over-year in the first half of 2024, driven by a sharp decline in Asia Pacific issuance.
The European Securities and Markets Authority (ESMA) has identified the EU GreenBonds and ESG Ratings regulations, as well as preparatory work for a database including sustainability-related information, among its priorities for 2025.
Using sustainability-linked targets in greenbonds could provide the "missing" element to promote more discipline and tackle greenwashing, according to Atlanticomnium.
See below for the highlights of the past week, and get all your ESG news at ESG Today: Sustainability Goals, Initiatives and Achievements Amazon Launches Carbon Credit Investment Service SBTi Releases Initial Draft of New Corporate Net Zero Standard Nordea Signs 68,000 Tonne Carbon Removal Agreement UBS Pushes Back Net Zero Target by 10 Years Following (..)
The measures in sum: The package of measures is intended to improve trust and transparency in the market for sustainable investment products and minimize greenwashing. The proposed guidance is designed to help firms better understand the FCA’s expectations under the anti-greenwashing rule and other associated requirements.
In this paper, we describe our process for assessing ESG-labeled bonds and show that, by systematically applying this framework, investors can help set a gold standard for the market, avoid surprises from controversy and greenwashing, and potentially generate more alpha over time. Bigger, Broader, Better: The Rise of ESG-Labeled Bonds.
Moody’s anticipates that volumes may bottom out in the region in 2024, with tailwinds from incentives from the Inflation Reduction Act driving increases in green technologies, although the report also notes uncertainty from the upcoming U.S. election on federal climate policy clouding the issuance outlook.
The answer depends on the fund, the region, the sector, and the company. In a market that expanded before firm regulatory guardrails were put in place, there is very valid concern that some transition-labelled funds may be perpetuating greenwashing by investing in companies misaligned with credible decarbonisation pathways.
In the shorter term, there is also concern that ESMA’s incoming rules will create similar inconsistencies with other sustainable finance regulations, such as the EU GreenBond Standard. The post EU Names Rules a Stop-gap Solution to Greenwashing appeared first on ESG Investor.
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.
Sustainable bond issuers have been urged to not let 'greenwashing' concerns drive them to limit data disclosure as sustainable investors value data transparency more than they do the specific figures, according to Swiss asset manager GAM.
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