Issuance of debt linked to companies’ climate promises has fallen but green bond market proves robust
IN AN era of higher scrutiny for sustainable investing products, green bonds are proving to be the tried-and-tested sustainability choice for fixed income investors as more esoteric offerings falter.
Global green bond issuance has remained steady – the total in the first four months of this year was US$232 billion, equal to the issuance in the same period in 2023, according to a report from Morgan Stanley.
However, in the case of sustainability-linked bonds – a newer product that has come under fire from environmentalists – issuance was down 51 per cent in the first four months, compared with 2023, to just US$12.5 billion.
