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Join us for a digest of the latest research, analysis and insights on the relationships between environmental social and corporate governance issues and global business, finance and society. In each episode, hear from experts sharing their insights on how institutional investors can identify and mitigate risks related to ESG factors, but also leverage opportunities in sustainable investment and debt capital markets. This is ESG in Conversation.
Episodes
Friday Nov 12, 2021
Friday Nov 12, 2021
Episode Summary
Hosts
- Nicholas Gandolfo, Director, Corporate Solutions
- Aditi Bhatia, Regional Sales Manager, Corporate Solutions
In this episode, Nick and Aditi discuss hot topics in sustainable finance. As the global green, social, sustainable, and sustainability-linked market continues to thrive, our hosts take note of the growing variety in use of proceeds, the debate around sustainability-linked bond penalties, and an eyebrow-raising new SLB issuance from Philip Morris International.
Sustainable Bond Market Reaches Half a Trillion in 2021
The Climate Bonds Initiative (CBI) reported that total labelled bond issuances (green, social, sustainability, transition and sustainability-linked) hit the half trillion mark in the first half of the year. That’s a 59% increase compared by 2020. For the green bond market specifically, CBI predicts annual volumes will reach $1 trillion by 2023. Other trends noted in the report are the continued growth of social and sustainability bonds, with social bond volumes quadrupling in H1 and sustainability bonds increasing 20%. The volume of sustainability-linked bonds also continued to soar in 2021. Transition bond issuances, on the other hand, are still struggling to gain traction.
Biodiversity on the Agenda
Nick notes that biodiversity continues to draw the attention of investors and issuers globally, with a growing number of reports and articles on the topic. This year also saw the UN Convention on Biological Diversity, or COP 15, wrapping up in China, and the launch of the Task Force on Nature-related Financial Disclosures over the summer. In the world of sustainable finance, we think biodiversity-related targets and use of proceeds will likely become more prominent within linked instruments and labeled bond issuances.
Webinar | ESG Risk Rating in APAC: Supporting the Corporate Sustainability Journey
Key Moments
00:02:50 | Market overview |
00:02:52 | CBI report on H1 2021 |
00:04:36 | Tier 2 subordinated debt |
00:05:28 | Greenwashing debate |
00:06:33 | SLBs and questions about penalties |
00:07:05 | Biodiversity |
00:08:02 | Nuclear |
00:09:18 | Philip Morris SLB |
00:10:06 | CBI report on Latin America |
00:10:44 | CBI annual conference |
00:11:53 | Green bonds overview |
00:21:35 | Social loans overview |
00:22:58 | Green loans overview |
00:24:23 | SLB overview |
00:27:57 | Audience questions |
00:30:09 | SLL overview |
00:31:47 | Transition bonds overview |
Links to Select Resources
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Climate Bonds Initiative: Sustainable Debt Highlights H1 2021
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Asian Investor: Do Fears of Greenwashing Outweigh the Evidence?
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Environmental Finance: French Financial System 'Significantly Exposed' to Biodiversity Risk
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European Scientist: Kazakhstan Banks on Nuclear Energy For Transition to Low-Carbon Future
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Climate Bonds Initiative: Latin America & Caribbean: Sustainable Finance State of the Market 2021
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Climate Bonds Initiative: Climate Bonds Conference21 Videos
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Climate Bonds Initiative: Transition Finance for Transforming Companies discussion paper
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Sustainalytics SPOs:
- Isle of Man Sustainability Finance Framework Second-Party Opinion
- Grupo Aeroportuario del Pacífico Green Financing Framework
- Verizon Green Financing Framework
- Axis Bank Sustainable Finance Framework Second-Party Opinion
- California Housing Finance Agency Social Bond Framework for the Purchase and Financing of Citibank, N.A. Affordable Housing Loans
- Bosam Social Bond Framework
- Rumo S.A. Sustainability-Linked Finance Framework
- Lilly Sustainability Bond Framework
- Vodafone Sustainable and Sustainability-Linked Finance Framework Second-Party Opinion
- CEMEX Sustainability-Linked Financing Framework Second-Party Opinion
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